Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav D.D. for the Period from 1 January 2021 to 30 June 2021

Unaudited Interim Report of the Triglav Group and Zavarovalnica Triglav d.d. for the period from 1 January 2021 to 30 June 2021

MANAGEMENT BOARD:

President: Andrej Slapar Members: Uroš Ivanc Tadej Čoroli Barbara Smolnikar David Benedek Marica Makoter Ljubljana, August 2021

Gross written premium for insurance, coinsurance and reinsurance contracts in EUR million 731.1 673.4

437.9 399.9 Triglav Group Zavarovalnica Triglav

H1 2020 H1 2021 Net profit before tax in EUR million 56.2

40.6

31.6 32.3 Triglav Group Triglav Group Zavarovalnica Triglav Zavarovalnica Triglav

H1 2020 H1 2021

Combined ratio of the Triglav Group

92.4% 89.6% 28.2% 29.5% Loss ratio Expense ratio

Loss ratio 64.3% 60.1% Expense ratio

H1 2020 H1 2021

Credit rating EUR 1.7 "A" Dividend per share of the Triglav Group with a stable medium-term 2 outlook

Dear shareholders, business partner and colleagues,

The Triglav Group earned a consolidated profit of EUR 56 million before tax in the first half of 2021, which is 39% more than in the same period last year and 35% more than in the year before that. We are satisfied with these results. Taking this into account and the business conditions anticipated until the end of the year, we estimate that we will achieve the planned annual profit of EUR 85–95 million.

Backed by our underwriting discipline, we achieved a 9% increase in consolidated gross written premium compared to last year (EUR 731 million). Premium growth was recorded in all markets; in Slovenia it stood at 7% (4 percentage points above the market) and in markets outside Slovenia it was 16%. The share of the Triglav Group's total written premium in markets outside Slovenia also grew this year, reaching 20%. Premium growth was recorded in all three insurance segments; the non-life insurance segment grew by 10%, the life and pension insurance segment by 9% and the health insurance segment by 1%.

Gross claims paid totalled EUR 348 million, up by 5% relative to the same period last year and 4% relative to the year before that. The growth in gross claims paid resulted from portfolio growth in all insurance segments over the last few years and the claims paid for which adequate provisions were already made at the end of last year (especially claims related to the earthquake in Croatia). We continue with the prudent taking of underwriting risks. Despite the growth in gross claims paid, we observed a lower frequency of claims in specific insurance classes in the first half of 2021 due to occasional restrictions related to the COVID-19 pandemic and the consequently low client activity. In contrast to the first quarter, major CAT events were observed in the second quarter, with an estimated value of EUR 6 million. In view of all of the above, we continue to achieve extremely good underwriting results, while in anticipation of the full normalisation of the situation we are creating appropriate insurance technical provisions with additional caution (e.g. health and motor vehicle insurance). The Triglav Group’s combined ratio in non-life and health insurance was favourable, standing at 89.6%, which is the result of an improved claims ratio.

Also this year, low interest rates are affecting the rates of return on the Triglav Group's extensive investment portfolio worth EUR 3,558 million, as bond investments comprise the majority of investments (71%). We did not make any significant changes to investing and the structure of the entire portfolio. This year's situation in the capital markets and net inflows had a positive effect on the management of clients' assets in mutual funds and discretionary mandate assets, which the Triglav Group carries out via Triglav Skladi. Assets reached EUR 1,392 million, an increase of 20% compared to 2020 year-end.

We place great emphasis on ensuring that the dividend payment is in line with the outlined dividend policy. We are satisfied that this was possible this year. We fully met this year’s pandemic-related requirements of the insurance regulator and paid out dividends to shareholders. The dividend yield of the ZVTG share was 5%, and its total return in the first half of 2021 was 14%.

The Triglav Group remains committed to its sustainable orientation and focused on the set strategic guidelines. Our team of over 5,000 employees is working hard towards this goal, for which I would like to express my sincere gratitude.

Andrej Slapar President of the Management Board of Zavarovalnica Triglav

Business Report

1. Financial highlights in the first half of 2021 6

2. Governance of the Triglav Group 14

3. The share and the shareholders of Zavarovalnica Triglav 16

4. Operations in the period from 1 January to 30 June 2021 22

5. Financial result and financial position 43

6. Risk management 50

7. Employees of the Triglav Group 51

1. Financial highlights in the first half of 2021

1.1 Financial highlights of the Triglav Group

in EUR million H1 2021 H1 2020 Index 2021/2020 Gross written premium from insurance, coinsurance and reinsurance contracts 731.1 673.4 109 Net premium income 544.1 523.1 104 Gross claims paid* 347.6 330.8 105 Net claims incurred 351.3 338.3 104 Gross operating expenses 163.6 148.5 110 Profit before tax 56.2 40.6 139 Net profit 47.0 33.5 140 Net profit attributable to the controlling company 47.0 33.4 141 30 June 2021 31 December 2020 Index 2021/2020 Insurance technical provisions 3,221.3 3,033.2 106 Equity 871.9 870.2 100 Equity attributable to the controlling company 869.3 867.6 100 Number of employees 5,322 5,316 100

*Gross claims paid include gross claims paid from inward reinsurance

Key performance indicators of the Triglav Group

H1 2021 H1 2020 ROE annualised 11.2% 8.5% Loss ratio 60.1% 64.3% Expense ratio 29.5% 28.2% Combined ratio 89.6% 92.4% Ratio of gross operating expenses to gross written premium 20.3% 19.8%

1.2 Financial highlights of Zavarovalnica Triglav

in EUR million H1 2021 H1 2020 Index 2021/2020 Gross written premium from insurance, coinsurance and reinsurance contracts 437.9 399.9 110 Net premium income 292.1 283.2 103 Gross claims paid* 192.9 194.2 99 Net claims incurred 186.4 187.8 99 Gross operating expenses 98.0 88.7 110 Profit before tax 32.3 31.6 102 Net profit 26.4 26.4 100 30 June 2021 31 December 2020 Index 2021/2020 Insurance technical provisions 2,314.6 2,199.0 105 Equity 624.4 644.0 97 Number of employees 2,250 2,244 100

*Gross claims paid include gross claims paid from inward reinsurance

Key performance indicators of Zavarovalnica Triglav

H1 2021 H1 2020 ROE annualised 8.6% 9.1% Loss ratio 53.0% 55.5% Expense ratio 31.9% 32.1% Combined ratio 84.9% 87.6% Ratio of gross operating expenses to gross written premium 22.4% 22.2%

1.3 Activities, markets and position of the Triglav Group

The Triglav Group is the leading insurance/financial group in Slovenia and the Adria region as well as one of the leading groups in South-East Europe. The Group operates in seven markets in six countries. Furthermore, it operates in the wider international environment through partnerships with foreign insurance brokerage and agency companies as well as reinsurers.

Strategic activities

Insurance is the most extensive strategic activity of the Triglav Group, which includes non-life, life, health and pension insurance as well as reinsurance.

The insurance business of the Group comprises: ▪ in Slovenia: Zavarovalnica Triglav d.d., Triglav, Zdravstvena zavarovalnica d.d., Pozavarovalnica Triglav Re d.d. and Triglav, pokojninska družba d.d.; ▪ abroad: eight insurance undertakings in Croatia, Serbia, Montenegro, Bosnia and Herzegovina and North Macedonia.

The asset management activity at the Triglav Group, which is performed by Zavarovalnica Triglav, the Group’s life insurance and pension insurance companies, Triglav Skladi d.o.o., Triglav, Upravljanje nepremičnin d.o.o. and Trigal d.o.o., includes saving via the Group’s insurance services and investing in the Group’s mutual funds, pension funds and private equity funds.

The Triglav Group members directly involved in or supporting the Group’s strategic business lines Insurance Asset management Other

Slovenia ◼ Zavarovalnica Triglav d.d. ◼ Triglav Skladi d.o.o. ◼ Triglav INT d.d.

◼ Pozavarovalnica Triglav Re d.d. ◼ Triglav, Upravljanje ◼ Triglav Svetovanje d.o.o.

◼ Triglav, Zdravstvena nepremičnin d.o.o. ◼ Triglav Avtoservis d.o.o. zavarovalnica d.d. ◼ Trigal d.o.o. ◼ Triglavko d.o.o. ◼ Triglav, pokojninska družba d.d. ◼ ZTSR d.o.o. ◼ Alifenet d.o.o. Croatia ◼ Triglav Osiguranje d.d., Zagreb ◼ Triglav Savjetovanje d.o.o. Serbia ◼ Triglav Osiguranje a.d.o., Belgrade ◼ Triglav Savetovanje d.o.o. Montenegro ◼ Lovćen Osiguranje a.d., Podgorica ◼ Lovćen auto d.o.o. ◼ Lovćen životna osiguranja a.d., Podgorica

Bosnia and ◼ Triglav Osiguranje d.d., Sarajevo ◼ PROF-IN d.o.o. ◼ Triglav Savjetovanje d.o.o.

Herzegovina ◼ Triglav Osiguranje a.d., Banja Luka ◼ Društvo za upravljanje Evropskim ◼ Autocentar BH d.o.o. dobrovoljnim penzijskim fondom a.d, Banja Luka

North ◼ Triglav Osiguruvanje a.d., Skopje ◼ Triglav prenzisko društvo a.d.,

Macedonia ◼ Triglav Osiguruvanje Život a.d., Skopje Skopje

1.4 Composition of the Triglav Group

As at the reporting date, the Triglav Group comprises 44 companies; in addition to the parent company, 28 subsidiaries and 15 associates.

The Triglav Group as at 30 June 2021

Parent company: ▪ Zavarovalnica Triglav d.d.

Subsidiaries: ▪ Pozavarovalnica Triglav Re d.d., Ljubljana ▪ Triglav, Zdravstvena zavarovalnica d.d., Koper ▪ Triglav, pokojninska družba d.d., Ljubljana ▪ Triglav INT, holdinška družba d.d., Ljubljana ▪ Triglav Osiguranje d.d., Zagreb ▪ Triglav Osiguranje a.d.o., Belgrade ▪ Lovćen Osiguranje a.d., Podgorica ▪ Lovćen životna osiguranja a.d., Podgorica ▪ Lovćen auto d.o.o., Podgorica ▪ Triglav Osiguranje d.d., Sarajevo ▪ Autocentar BH d.o.o., Sarajevo ▪ Sarajevostan d.o.o., Sarajevo ▪ Triglav Osiguranje a.d., Banja Luka ▪ Triglav Osiguruvanje a.d., Skopje ▪ Triglav Osiguruvanje Život a.d., Skopje ▪ Triglav Skladi, družba za upravljanje d.o.o., Ljubljana ▪ PROF-IN d.o.o., Sarajevo ▪ Triglav Svetovanje, zavarovalno zastopanje d.o.o., Domžale ▪ Triglav Savjetovanje d.o.o., Zagreb ▪ Triglav Savetovanje d.o.o., Belgrade ▪ Triglav Savjetovanje d.o.o., Sarajevo

▪ Triglav Avtoservis, družba za storitve in trgovino d.o.o., Ljubljana ▪ Triglav, Upravljanje nepremičnin d.o.o., Ljubljana ▪ Triglav, upravljanje nekretninama d.o.o., Zagreb ▪ Triglav, upravljanje nekretninama d.o.o., Podgorica ▪ HGP Rest, investicije d.o.o., Ljubljana ▪ Triglav penzisko društvo a.d., Skopje ▪ Vse bo v redu, Zavod Zavarovalnice Triglav za družbeno odgovorne aktivnosti

Associates: ▪ Triglavko, zavarovalno zastopniška družba d.o.o., Ljubljana ▪ TRIGAL, upravljanje naložb in svetovalne storitve d.o.o., Ljubljana ▪ Salinera, upravljanje naložb d.o.o., Ljubljana ▪ Nama, trgovsko podjetje d.d., Ljubljana ▪ Društvo za upravljanje Evropskim dobrovoljnim penzijskim fondom a.d., Banja Luka ▪ ZTSR, dejavnost holdingov d.o.o., Ljubljana ▪ Diagnostični center Bled d.o.o., Bled ▪ MTC Fontana d.o.o., Maribor ▪ Medi Cons kardiologija d.o.o., Novo Mesto ▪ Gastromedica d.o.o., Murska Sobota ▪ Internistična GE ambulanta d.o.o., Nova Gorica ▪ Cardial d.o.o., Ljubljana ▪ DC Naložbe d.o.o., Ljubljana ▪ Kirurški sanatorij Rožna dolina d.o.o., Ljubljana ▪ Alifenet d.o.o., Ljubljana

Changes in the Triglav Group in the first six months of 2021: ▪ Through in cash contribution of EUR 3.3 million, Zavarovalnica Triglav increased the capital of jointly controlled ZTSR d.o.o., thereby maintaining its 50% participating interest in said company. ▪ The ZTSR Group increased its strategic investment portfolio by acquiring a 100% participating interest in Kirurški sanatorij Rožna dolina d.o.o. ▪ Zavarovalnica Triglav made a subsequent capital contribution of EUR 63 thousand to its subsidiary Triglav Avtoservis d.o.o., thus remaining a 100% owner of said company. ▪ Triglav Svetovanje d.o.o. and Triglav Osiguranje a.d.o, Belgrade increased the capital of their subsidiary Triglav Savetovanje d.o.o., Belgrade proportional to their participating interests. The capital increase was raised by in cash contributions of RSD 7.9 million or EUR 67 thousand. As a result, the two companies retained their participating interests in said company of 51% and 49% respectively. ▪ Triglav Svetovanje d.o.o. and Triglav Osiguranje d.d., Zagreb increased the capital of their subsidiary Triglav Savjetovanje d.o.o., Zagreb proportional to their participating interests. The capital increase was raised by in cash contributions of HRK 1.1 million or EUR 145 thousand. As a result, the two companies retained their participating interests in said company of 51% and 49% respectively. ▪ Trigal’s subsidiary Ljubljanica d.o.o. was renamed Salinera, upravljanje naložb d.o.o. ▪ Triglav INT d.d. acquired a 0.30% participating interest amounting to MAK 2,026,036 or EUR 82,883 from non-controlling interest holders of Triglav Osiguruvanje a.d., Skopje, thus becoming its 81.13% owner.

▪ Lovćen Osiguranje a.d., Podgorica increased the capital of its subsidiary Lovćen Auto d.o.o., Podgorica through in cash contribution of EUR 400,000 in the first six months of 2021, thus remaining its 100% owner. The changes in the Triglav Group are discussed in greater detail in Section 2.7 of the Accounting Report.

1.5 Strategy of the Triglav Group

The strategy of the Triglav Group for the period from 2019 to 2022 follows a path to become a modern, digital and dynamic insurance/financial group, which remains the leader both in Slovenia and the wider region.

Mission Building a safer future.

Values ▪ Responsiveness: We respond immediately and effectively. ▪ Simplicity: We are simple and transparent. ▪ Reliability: We deliver as promised.

Vision of the Triglav Group Based on its client-centric approach, the Group dynamically develops new ways of doing business as the foundation of its responsible long-term development, while at the same time earns profit and operates safely. ▪ In South-East Europe, the Triglav Group is recognised as the leading provider of innovative and comprehensive insurance-service products and asset management services. ▪ The Group is the largest in terms of income and the best in terms of client satisfaction. ▪ Clients perceive the Group’s omni-channel products and services as simple and desirable. ▪ Client experience is the Group’s main competitive advantage. ▪ The Group dynamically develops new ways of doing business, setting top trends in digitalisation. ▪ The Group is well-positioned in dynamic networks of business ecosystems. ▪ The Group effectively manages the risks and ensures its financial stability. ▪ Return on equity (ROE) exceeds 10% throughout the whole strategy period. ▪ The standalone »A« credit rating assigned by a renowned rating agency is being maintained. ▪ The Group’s governance and management systems are structured and effective. ▪ The Group’s processes are lean, simple, technologically advanced and cost-effective. ▪ Engaged and highly skilled employees are the cornerstone of the Group’s culture of openness and cooperation, as well as its sustainable development and a responsible attitude towards all stakeholders.

Key strategic guidelines

Long-term stable operations and increased value of the Triglav Group

Client focus and development of related services

Developing cooperative and agile organisation and culture

Implementation of the Triglav Group Strategy in the first six months of 2021

In accordance with its strategy, the Group pursued its planned short-term goals and implemented numerous activities in the first half of 2021, despite the fact that this period was still in the grip of the COVID-19 pandemic.

Through a deliberate approach to the implementation of its activities, the Group supported the long-term stability of its business and risk management, strengthened its corporate governance and transferred best practices among the Group members, upgraded its digital way of doing business, expanded its activities in new markets and upgraded its product and service range.

In line with its strategic guidelines, the Group focused on improving the client experience, including by strengthening various sales and marketing partnerships, in order to bring its clients a more comprehensive shopping experience.

Sustainable development is becoming integrated in the Group’s operations. The Group has realised its commitment to business sustainability, where it outlined its development guidelines in the document entitled “The Triglav Group’s commitment to sustainability (ESG)” at the end of 2020. The Group integrated the monitoring of sustainability risks into its asset management and insurance and investment financial products, and adopted the document entitled “The sustainability aspect of the investment policy”. This year, the Group has continued the process of integrating sustainability risks and opportunities into its business; thus, in asset management, the share of sustainable investment classes has been increasing in line with the European Green Deal’s overarching objective for the EU to become the first climate neutral continent by 2050. With respect to the insurance business, the Group provides products to underwrite risks related to climate change, the more efficient use of energy and its production from renewable sources and sustainable mobility, as well as promotes preventive action by policyholders.

The assessment of the implementation and realisation of the Group’s strategy in the first half of 2021 is positive and encouraging. A selection of key results and the contribution to the realisation of individual strategic guidelines are presented below.

1. Long-term stable operations and increased value of the Triglav Group ▪ In the first half of 2021, gross written premium rose by 9% at the Group level, earning a profit before tax of EUR 56.2 million, up by 39% compared to the same period last year. ▪ By taking prompt action with respect to the potential effects of the COVID-19 pandemic, the Group pursued its objectives related to financial stability, capital adequacy and profitability.

▪ The Group focused not only on cost-effectiveness but also on ensuring an effective risk management system and upgrading it, including taking into account the situation of potentially even greater uncertainty due to the COVID-19 pandemic. ▪ The Group seized opportunities on new target markets by establishing new partnerships and upgrading existing partnerships in various fields. ▪ The Group carried out activities aimed at not only achieving synergy effects at the Group level but also strengthening the competitive position of each Group member. 2. Client focus and development of related services ▪ The Group ensured business continuity throughout the whole period and strengthened its remote business, which also contributed to a higher client satisfaction score (NPS = 76%). ▪ The Group’s client satisfaction measurement was upgraded by including additional communication channels and deepening its understanding of the client experience as well as by pursuing the objective of eliminating negative experiences quickly and transparently. ▪ The Group redesigned the existing and developed new products: clients were offered an even wider choice of insurance products, with a focus on life and health insurance products, including other insurance products for which market potential was identified, such as small animal insurance. ▪ The Group continued to upgrade the client management system and strengthened the assistance model, which provides clients not only with an even broader range of services but also a faster delivery of services. ▪ The Group ensured high responsiveness, reliability and transparency in all communication channels with its clients. 3. Developing a cooperative and agile organisation and culture ▪ The Group moved closer to achieving its desired culture and strengthened cooperation, development orientation, openness and creativity. ▪ The Group’s focus on digital business was strengthened, thus implementing the philosophy of agility. ▪ The Group pursued key values (responsiveness, simplicity and reliability) in relation to all its stakeholders and in view of the ongoing COVID-19 epidemic. ▪ The Group promoted intergenerational cooperation, teamwork, knowledge transfer and effective communication at all organisational levels. ▪ The Group focused on strengthening its 2021 core competence, i.e. focusing on relationships. ▪ The Group continued to develop and strengthen its employees’ skills, especially leadership skills, through the system of individual and group coaching.

1.6 Significant events in the reporting period

Significant events in the first half of 2021 included: ▪ On 2 March 2021, the Supervisory Board reappointed Marica Makoter as the Management Board member – Worker Director at the proposal of the Works Council. Her new five-year term will begin on 23 December 2021. ▪ On 5 March 2021 and amended on 1 April 2021, the Insurance Supervision Agency (ISA) sent a letter to insurance, reinsurance and pension companies with the expectation that, due to the uncertain situation regarding the spread of the COVID-19 pandemic and the consequent uncertain consequences for the economy and the insurance sector, they

suspend dividend payments and undertake no irrevocable commitments to pay out dividends by 30 September 2021 unless they demonstrate guaranteed solvency, sufficient liquidity and profitability in compliance with the precautionary principle. Both recommendations are published at www.triglav.eu/sl/vlagatelji/aktualno/obvestila. ▪ The shareholders passed the resolution proposed by the Management Board and the Supervisory Board that part of accumulated profit in the amount of EUR 38,649,751.60 be used for dividend payment. This represents 53% of the Company's consolidated net profit for 2020 and a 5% dividend yield. The dividend amounted to EUR 1.70 per share. See sections 2.1 General Meeting of Shareholders and 5.3 Dividend policy for more details. ▪ Andrej Andoljšek, Tomaž Benčina, Branko Bračko, Jure Valjavec and Peter Kavčič were appointed new Supervisory Board members, shareholder representatives, by the General Meeting of Shareholders. At the first session of the new Supervisory Board, Andrej Andoljšek was appointed Chairman of the Supervisory Board and Branko Bračko Vice Chairman. See Section 2.3 Composition of the Supervisory Board for more information.

2. Governance of the Triglav Group

The Company uses a two-tier governance system. The management and supervisory bodies are as follows: General Meeting of Shareholders, Management Board and Supervisory Board. They operate in compliance with the primary and secondary legislation, the Articles of Association and their own rules of procedure. Zavarovalnica Triglav’s Articles of Association are published on its official website (www.triglav.eu).

The operation of the General Meeting of Shareholders, the Management Board and the Supervisory Board is described in greater detail in Section 5. Corporate Governance Statement of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2020.

General Meeting of Shareholders

Zavarovalnica Triglav’s shareholders met once, i.e. on 25 May 2021, at the 46th General Meeting of Shareholders. The total number of shares and voting rights represented at the General Meeting of Shareholders was 18,198,597 or 80.05% of all shares to which the voting rights are attached. The General Meeting of Shareholders was briefed on: ▪ Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2020, ▪ the opinion given by the audit firm, ▪ Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2020, ▪ Report of the Supervisory Board of Zavarovalnica Triglav d.d. on the Verification of the Annual Report of the Triglav Group and Zavarovalnica Triglav d.d. for 2020, ▪ Opinion of the Supervisory Board on the Annual Internal Audit Report of the Internal Audit Department of Zavarovalnica Triglav d.d. for 2020.

The shareholders adopted a resolution on the following distribution of the accumulated profit of EUR 89,624,175.26 as at 31 December 2020: ▪ A part of accumulated profit in the amount of EUR 38,649,751.60 shall be allocated for dividend payments The dividend in the amount of EUR 1.70 gross per share shall be paid to the shareholders appearing in the share register as at 9 June 2021. As at 10 June 2021, the Company provided funds for the payment of all dividends to the account of KDD – Centralno klirinška depotna družba d.d. ▪ The distribution of the remaining accumulated profit of EUR 50,974,423.66 shall be decided in the next few years.

The shareholders granted a discharge for the 2020 business year to both the Management Board and the Supervisory Board of Zavarovalnica Triglav and adopted amendments to the Articles of Association of Zavarovalnica Triglav d.d.

The General Meeting of Shareholders took note of the resignation of the Supervisory Board member Nataša Damjanovič, dated 18 June 2020, and of the expiry of the term of office as of 13 June 2021 of four Supervisory Board members, shareholder representatives, i.e. Andrej Andoljšek, Milan Tomaževič, Žiga Škerjanec and Mario Gobbo.

Andrej Andoljšek, Tomaž Benčina, Branko Bračko, Peter Kavčič and Jure Valjavec were appointed new Supervisory Board members, shareholder representatives, for the four-year term of office, starting as of 14 June 2021.

At the General Meeting of Shareholders, the Pan-Slovenian Shareholders' Association (VZMD) announced an action to set aside resolution No. 3.1.

Detailed information on the General Meeting of Shareholders’ resolutions are available at the Company’s website https://www.triglav.eu/sl/vlagatelji/aktualno/obvestila.

Composition of the Management Board

As at 30 June 2021 the Management Board of Zavarovalnica Triglav was comprised of: ▪ Andrej Slapar, President, ▪ Uroš Ivanc, Member, ▪ Tadej Čoroli, Member, ▪ Barbara Smolnikar, Member, ▪ David Benedek, Member, and ▪ Marica Makoter, Member.

Composition of the Supervisory Board

As at 30 June 2021, the Supervisory Board of Zavarovalnica Triglav was comprised of: ▪ shareholder representatives: ▪ Andrej Andoljšek, Chairman, ▪ Branko Bračko, Vice Chairman, ▪ Tomaž Benčina, Member ▪ Peter Kavčič, Member, ▪ Igor Stebernak, Member, and ▪ Jure Valjavec, Member, ▪ employee representatives: ▪ Peter Celar, Member, ▪ Branko Gorjan, Member, ▪ Igor Zupan, Member.

3. The share and the shareholders of Zavarovalnica Triglav

3.1 The share of Zavarovalnica Triglav

The total return on the ZVTG share as at the end of June was 14%, of which the price growth represented 9%. The price-to-book ratio was 0.9. In terms of market capitalisation, Zavarovalnica Triglav is the fourth largest Slovenian listed company (EUR 743 million).

The trading volume and ZVTG share price movements were to some extent influenced by the implementation of the dividend policy this year and, in a broader sense, by the performance of insurance sector’s shares on the equity markets. In the first quarter, there was uncertainty regarding the payment of Zavarovalnica Triglav’s dividend due to the sector-wide positions of the insurance sector regulator. In the following months, the share price was influenced by the proposal of the Management Board and the Supervisory Board regarding the dividend payment and its adoption by the General Meeting of Shareholders on 25 May 2021 and the dividend payment with the cut-off date of 8 June 2021. The share outperformed the STOXX Europe 600 Insurance sectoral index of 35 shares of European insurance companies by 2 percentage points on a half-yearly basis. In the same period, the Ljubljana Stock Exchange SBITOP index, in which the ZVTG share holds a 11.5% share, grew by 25%.

Movement in the ZVTG share price in H1 2021 compared to the Ljubljana Stock Exchange SBITOP index and the sectoral index of European insurance companies STOXX Europe 600 Insurance (baseline date: 31 December 2020 = 100)

130%

125%

120%

110% 109%

107% Vrednost Vrednost % v

100%

90%

ZVTG SBITOP indeks STOXX Europe 600 Insurance indeks

With an average daily turnover of EUR 119 thousand (excluding block trades: EUR 96 thousand), the ZVTG share was among five most liquid shares on the Ljubljana Stock Exchange. A total of 23% of its stock exchange turnover (excluding block trades) was performed by the liquidity provider.

Movements in the ZVTG share price (left axis) and turnover (right axis) in EUR

36 700

35 600

34 500

33 400 32.70

32 300 ZVTG price inEUR ZVTGprice

31 200 EURthousand in Turnover

30 100

29 0

ZVTG turnover ZVTG closing price

Key figures for Zavarovalnica Triglav s share in H1 2021 (in EUR)

Items 30 June 2021 Maximum closing price 35.30 Minimum closing price 29.80 Closing price 32.70 Book value per share (parent company)* 27.47 Book value per share (consolidated data)* 38.24 Net earnings per share (consolidated data)** 2.07 Market capitalisation 743,439,340 Average daily trading volume (excluding block trades) 95,520 Number of shares 22,735,148 The percentage of floating stock*** 30.7% Traded on Ljubljana Stock Exchange - LJSE ISIN code SI0021111651 Ticker symbol ZVTG Bloomberg ZVTG SV Reuters ZVTG.LJ Credit rating (S&P Global Ratings, AM Best) »A«, stable medium-term outlook

*In calculating the book value per share (parent company), the equity of Zavarovalnica Triglav and the number of shares as at the reporting date were taken into account, whilst in calculating the book value per share (consolidated data), the equity attributable to the controlling company and the number of shares as at the reporting date were taken into account. **In calculating net earnings/loss per share (consolidated data), net profit or loss of the Triglav Group and the weighted average number of shares were taken into account. ***The shares held by shareholders with a 5% or higher stake are deducted from the total number of shares.

The Company is committed to transparent information of and active contact with its shareholders, investors and analysts. All key information is regularly published in Slovenian and English on its website www.triglav.eu. In this quarter, in the light of the COVID-19 pandemic, the Company continued to keep in contact with institutional investors via videoconference meetings and calls. In this way, the Company participated in investor conferences of its stock exchange members and the stock exchange as well as held its own meetings with institutional investors immediately following the publication of its annual and interim results.

3.2 Equity

Zavarovalnica Triglav’s share capital remained unchanged and amounted to EUR 73,701,391.79 as at 30 June 2021. It was divided into 22,735,148 ordinary registered no-par value shares of the same class. All shares are issued in a dematerialised form and are freely transferable. Each share represents the same stake and corresponding amount in share capital, and all have been fully paid up. Each share gives its holder the right to one vote at the General Meeting of Shareholders, a proportionate share of profit allocated for dividend payment and a proportionate share of residual bankruptcy or liquidation estate after the payoff of preference shareholders.

3.3 Shareholder structure

There were no significant changes in the shareholder structure of Zavarovalnica Triglav in the reporting period. Total ownership stake of the Company’s top ten largest shareholders stood at 77.6%, and the stakes of the two largest shareholders remained unchanged.

The top ten shareholders of Zavarovalnica Triglav as at 30 June 2021 (share in %)

Zavod za pokojninsko in invalidsko zavarovanje Slovenije, Ljubljana 34.5%

SDH d.d., Ljubljana 28.1%

Addiko Bank, d.d., Pension fund 1 – fiduciary account, Croatia 6.7%

UniCredit Bank Austria – fiduciary account, Austria 2.6%

Citibank – fiduciary account, Great Britain 2.4%

Hrvatska poštanska banka – fiduciary account, Croatia 1.0%

Skandinaviska Enskilda Banken AB – fiduciary account, Luxembourg 0.8%

Pozavarovalnica Sava Re d.d., Ljubljana 0.7%

State Street Bank and Trust – fiduciary account, USA 0.4%

Forplan d.o.o., Ljubljana 0.4%

According to the share register data, Zavarovalnica Triglav had 12,416 shareholders/subscribers (index 94) as at 30 June 2021, among them around 30 international banks with fiduciary accounts held by their clients. In recent years, international shareholders have maintained a stable ownership stake between 16% and 17%, while Slovenian citizens have gradually increased their, which stood at 12.2% as at 30 June 2021, up by 0.8 percentage point relative to 31 December 2020.

Shareholder structure of Zavarovalnica Triglav as at 30 June 2021

Total Domestic International Legal entities Individuals Number of shares 22,735,148 19,053,782 3,681,366 19,959,346 2,775,802 Number of shareholders 12,416 12,086 330 486 11,930 Number of shares - percentage 100.0% 83.8% 16.2% 87.8% 12.2% Number of shareholders - percentage 100.0% 97.3% 2.7% 3.9% 96.1% The Company’s share of the free float, i.e. the shares held by the shareholders with less than a 5% ownership stake, stood at 30.7%. The share is stable and the ownership of these shares is globally dispersed among shareholders from 36 countries.

The minority shareholder structure of Zavarovalnica Triglav by the country of origin as at 30 June 2021 (the share of the free float in %)

From other 23 countries: 0.2% Japan: 0.1% Cyprus: 0.1% Bosnia and Herzegovina: 0.1% Denmark: 0.2% Ireland: 0.2% Czech Republic: 0.5% Hungary: 0.6% USA: 2.3% Luxembourg: 3.0% Croatia: 6.3% Great Britain: 8.1% Austria: 9.1% Slovenia: 69.1%

The members of Zavarovalnica Triglav’s Management Board and Supervisory Board held a total of 3,009 ZVTG shares as at 30 June 2021, or 0.013% of the Company’s total shares.

3.4 Credit rating

The credit ratings of the Triglav Group – and thus its parent company Zavarovalnica Triglav and its subsidiary Pozavarovalnica Triglav Re – are assigned by two renowned credit rating agencies: S&P Global Ratings (hereinafter: S&P) and AM Best. The Triglav Group was assigned an “A” stand-alone credit rating with a stable medium-term outlook by both. The latest credit rating report, i.e. the announcement of the credit rating agency from 2020, is available on the website www.triglav.eu under the Investor Relations tab.

3.5 Dividend policy

The implementation of Zavarovalnica Triglav’s dividend policy is subordinated to achieving the medium-term sustainable target capital adequacy of the Triglav Group, as shown in the figure below.

The capital management strategic objectives and the dividend policy criteria

Zavarovalnica Triglav’s dividend policy, which was revised in March 2018, sets out as follows: “The Company pursues an attractive and sustainable dividend policy. A part of consolidated net profit of the preceding year, which is to be allocated to dividend payment, accounts for at least 50%. The Company will strive to pay out a dividend not lower than the dividend paid out in the preceding year. As thus far, the future implementation of the dividend policy will be subordinated to achieving the medium-term sustainable target capital adequacy of the Triglav Group. The proposal of the Management Board and the Supervisory Board as regards the annual distribution of accumulated profit of the Company will therefore take into account the following three objectives in a balanced manner: to ensure prudent capital management of the Triglav Group and its financial stability, to reinvest net profit in the implementation of the strategy of growth and development of the Triglav Group and to pay out attractive dividends to the shareholders.”

The Company considers its dividend policy to be a firm commitment to its shareholders and implements it as it is defined. This year and last year, it was impacted by the COVID-19 pandemic and related positions of the Slovenian insurance sector regulator. The Management Board and the Supervisory Board had to take this into account in their proposal for the distribution of the Company’s accumulated profit. The General Meeting of Shareholders supported their proposals in both years. See Section 2.1 General Meeting of Shareholders for more information about this year’s General Meeting of Shareholders.

Gross dividend per share by year (EUR) and its share of consolidated net profit for the preceding year in 2013–2021

90% 82% 4,0 80% 69% 70% 3,5 67% 64% 70% 63% 56% 3,0 60% 53% 2,5 50% 2,0 40% 1,5 30% 20% 0% 1,0 0,5 10% 2.0 1.7 2.5 2.5 2.5 2.5 2.5 0 1.7 0% 0,0 2013 2014 2015 2016 2017 2018 2019 2020 2021

Gross dividend per share (in EUR) % of consolidated net profit for the previous year

3.6 Bonds

Zavarovalnica Triglav has one issued subordinate bond, which is included in its capital adequacy. The bond was issued in 2019 as part of the Group’s regular capital management to ensure its optimal composition and cost efficiency and to replace the bond that matured on 21 March 2020. See the table below for more information.

Bond of Zavarovalnica Triglav ISIN XS1980276858

Type Subordinated bond (Tier 2 pursuant to the Solvency II regulations) Issue size in EUR 50,000,000 Currency EUR Fixed at 4.375% annually until first call date, payable annually Thereafter variable at 3-month Euribor + 4.845% (equal to the original initial credit spread Coupon rate and payment + 1 percentage point), payable quarterly First call date 22 October 2029 Maturity date 22 October 2049 Maturity in years 30.5 Regulated market Luxembourg Stock Exchange Issue Rating BBB+ (S&P)

4. Operations in the period from 1 January to 30 June 2021

4.1 The macroeconomic environment and environmental impact on the Triglav Group s operations

After the historic shock caused by the COVID-19 pandemic, the global economy has begun an uneven recovery in 2021. The speed of recovery depended on the epidemic and health conditions, which dictated the pace of lifting the restrictions, and by the capacity of economies to adapt to the new situation. The US recovered rapidly in the first quarter of the year, followed by many developed countries in the second quarter. Towards the end of June, industrial production in the euro area already showed a strong expansion, judging by the climate indicators, and the situation in the hardest hit service industries, such as tourism, began to normalise. Consumer sentiment strengthened and labour market conditions improved. The emergence of supply bottlenecks and lower raw material supply pushed up producer price inflation, but analysts believe that its largely transitory impact has not yet fully manifested itself in overall inflation. According to the first estimate, overall inflation stood at 1.9% year-on-year in June. The economic situation in Slovenia was similar to that in the euro area. The normalisation of the situation both in Slovenia and abroad was confirmed by its increasingly lively international trade.

The improved economic outlook for this year was also taken into account by the European Commission in its July forecast. Compared to the forecasts made at the end of last year, the growth for the euro area and Slovenia was revised up to 4.8% and 5.7% respectively, while overall inflation was slightly revised up to 1.9% and 1.4% respectively.

The improved health and economic situation was reflected in the situation in the capital markets by the end of the half year, along with the risks already posed by the new Delta variant and the consequent increase in coronavirus cases in some countries. At the beginning of the year, the positive sentiment was reinforced by the new US administration. This, together with a rise in oil prices, raised investor expectations of a faster economic recovery and of the Federal Reserve's intervention. Required US government bond yields rose significantly in the first quarter, also affecting the rest of the world. In the second quarter, their yields fell a little, whereas euro area government bond yields continued to rise slightly. The adverse effect of rising interest rates was repeatedly highlighted by the ECB, which committed itself to accelerated bond purchase in February. Towards the end of June, in contrast to the Federal Reserve, it dismissed allegations about scaling back bond-buying on several occasions. This is one of the reasons why government bond spreads of European periphery countries started to fall again in mid-May.

The required yield on the German ten-year bond rose by 0.36 percentage point to –0.21% by the end of June, while the required yield on the Slovenian bond increased by 0.28 percentage point to 0.11%. Bonds of peripheral countries have recorded similar increases in spreads since the beginning of the year. The corporate sector maintained a high degree of optimism in the first half of the year. In the second quarter, corporate bond spreads fell slightly further, while some stock indices again recorded historic highs. This was the case with both the American S&P and the German DAX; the former grew by 14.4% and the latter by 13.2% in the reporting period. Slovenia's SBITOP index recorded a high growth of 24.9%. Its value far exceeded its growth just before the crisis, but is still far from its historic peak in 2007.

The Group’s business results were impacted by major CAT events in the total estimated amount of EUR 6.1 million. In Slovenia, the April frost and storms caused EUR 4.3 million in crop damage (mainly fruit trees and vineyards), while in North Macedonia hail storms caused EUR 175 thousand in crop damage. Pozavarovalnica Triglav Re recorded claims of EUR 1.7 million due to the Filomena storm in Spain, frost in Italy and hail storms in Switzerland.

The unfavourable situation continued in the financial markets, as low interest rates resulted in lower rates of return on investment.

4.2 The insurance market and the position of the Group members in the first half of 2021

A total of 13 insurance companies, four foreign branches and two reinsurance companies are active in the Slovenian insurance market, all members of the Slovenian Insurance Association (hereinafter: the SZZ). As of 1 January 2021, SOP insurer is no longer a member of the SZZ, while AVRIO zavarovalnica obrtnikov in podjetje d.d. has become a new member.

In the first half of 2020, insurance companies collected 3.9% more gross written insurance, coinsurance and reinsurance premiums (the calculation does not take into account internal transfers of assets for the payment of pension annuities), or EUR 1,438.6 million. Non-life insurance premium recorded a 3.2% growth and reached a 74.6% share. Other damage to property insurance, comprehensive car insurance and fire and natural disaster insurance acontributed the most to the increase in non-life insurance premium. Life insurance premium rose by 5.8% due to higher unit-linked life insurance premium (21% growth). Health insurance premium is slightly higher than in the preceding year (index 100.4).

The Slovenian insurance market continues to be highly The Triglav Group’s insurance concentrated, with the four largest insurers holding a subsidiaries held a 38.5% market 76.0% market share. With a 30.4% market share share in the Slovenian insurance (compared to 28.9% in the corresponding period last market at the end of the first half year), Zavarovalnica Triglav remained the market leader, of 2021. followed by Zavarovalnica Sava (a 17.5% market share). The Triglav Group (the parent company, Triglav, Zdravstvena zavarovalnica and Triglav, pokojninska družba) increased its market share by 1.4 percentage points to 38.5%.

The market shares of the Triglav Group by segment: ▪ non-life insurance (excluding health insurance): 45.9% (an increase of 2.1 percentage points); ▪ life insurance: 31.0% (an increase of 0.8 percentage point); ▪ health insurance: 30.2% (an increase of 0.1 percentage point).

The market shares of Zavarovalnica Triglav by segment: ▪ non-life insurance: 31.8% (an increase of 1.8 percentage points); ▪ life insurance: 26.4% (an increase of 0.9 percentage point).

The market share of Triglav, Zdravstvena zavarovalnica: ▪ health insurance: 30.1% (an increase of 0.1 percentage point).

The market share of Triglav, pokojninska družba: ▪ supplemental voluntary pension insurance (SVPI): 19.9% (calculation based on the assessment of the company’s data).

Market share of insurance companies in Slovenia in H1 2021

5.8% 1.9% 4.4%

11.8% 38.5% Triglav Group Sava Insurance Group Generali Vzajemna Modra zavarovalnica 16.2% Merkur Other insurance companies

21.3%

Source: Slovenian Insurance Association

Market share and market position of the Triglav Group insurance companies in H1 2021

Market Market share Market share trend Ranked in 2021 Ranked in 2020 Slovenia 38.5% + 1.4-percentage point 1 1 Croatia 6.3% + 0.8-percentage point 7 7

Serbia* 7.7% + 0.5-percentage point 5 5

Montenegro 39.4% + 0.5-percentage point 1 1

Bosnia and Herzegovina 9.2% + 0.1-percentage point 2 3

- Federation of BiH 10.1% - 0.1-percentage point 3 3

- Republic of Srpska** 7.0% + 0.7-percentage point 4 6

North Macedonia 13.7% - 0.6-percentage point 1 1

* Data for January–March 2021 ** The market shares of Triglav Osiguranje, Banja Luka and the branch of Triglav Osiguranje, Sarajevo in Banja Luka are included.

4.3 Gross written insurance, coinsurance and reinsurance premiums

The Triglav Group posted a total of EUR 731.1 million in The Triglav Group recorded a consolidated gross written insurance, coinsurance 9% growth in gross written and reinsurance premiums, an increase of 9% relative to the insurance, coinsurance and corresponding period last year. Total written premium reinsurance premiums. increased in all insurance segments: ▪ non-life insurance: EUR 506.6 million (index 110); ▪ life and pension insurance: EUR 125.7 million (index 109); ▪ health insurance: EUR 98.8 million (index 101).

Consolidated gross written insurance, coinsurance and reinsurance premiums in H1 2021 compared to H1 2020

The proportion of non-life insurance premium in total consolidated gross written premium increased, the proportion of life and pension insurance premium remained unchanged, whereas the proportion of health insurance premium decreased: ▪ non-life insurance: 69.3% (H1 2020: 68.3%); ▪ life and pension insurance: 17.2% (H1 2020: 17.2%); and ▪ health insurance: 13.5% (H1 2020: 14.6%).

The structure of consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group by segment in H1 2021

13.5%

17.2%

69.3%

Non-life Life and pension Health

The Group continues to gradually increase the share of insurance premium written in markets outside Slovenia, which grew by 1.3 percentage points compared to the same period last year. A total of 73.6% of consolidated gross written premium was generated in the Slovenian insurance market, 19.6% of the premium was charged in markets outside Slovenia, while international reinsurance premium represented 6.8%.

The structure of consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group by market in H1 2021

6.8% 1.8% 2.6% Slovenia 2.6% Croatia 5.2% Serbia

Montenegro 7.4% Bosnia and Herzegovina

North Macedonia

International reinsurance

73.6%

Consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group by market

Gross written premium Index Share H1 2021/ Country H1 2021 H1 2020 H1 2020 H1 2021 H1 2020 Slovenia 538,142,719 501,098,528 107 73.6% 74.4% Croatia 53,865,447 42,017,086 128 7.4% 6.2% Serbia 37,835,270 33,907,534 112 5.2% 5.0% Montenegro 19,309,689 18,078,952 107 2.6% 2.7% Bosnia and Herzegovina 19,292,845 17,444,085 111 2.6% 2.6% North Macedonia 13,109,237 11,895,289 110 1.8% 1.8% International reinsurance 49,543,520 48,948,828 101 6.8% 7.3% Total 731,098,727 673,390,302 109 100.0% 100.0%

Premium growth was recorded in all insurance markets; in the Slovenian market it stood at 7%, while on markets outside Slovenia it reached 16%.

The share of non-consolidated gross insurance premium of retail clients, amounting to EUR 423.9 million (index 105), accounted for 60.8% of total written premium and decreased by 2.5 percentage points. The remaining EUR 273.8 million was accounted for by the premium of corporate clients (index 117).

The structure of non-consolidated gross written insurance, coinsurance and reinsurance premiums in H1 2021 of the Triglav Group (excluding Pozavarovalnica Triglav Re) by policyholder type

39.2%

60.8%

Corporate clients Retail clients

In terms of sales channels, the share of non-consolidated gross written premium of the Group, which was collected via own sales channels (agents, sales clerks, own points of sale, online and other own sales channels), reached 65.0% of total written premium, up by 0.8 percentage point to EUR 453.4 million. The remaining gross written premium of EUR 244.3 million was collected via the external sales channels (insurance agency and brokerage companies, banks, post offices and roadworthiness test providers).

Non-consolidated gross written insurance, coinsurance and reinsurance premiums in H1 2021 by sales channel of the Triglav Group (excluding Pozavarovalnica Triglav Re)

Insurance agents 29.4% 31.4%

Sales clerks* 29,7 % 27.8%

Insurance agency companies 27.7% 29.5%

Own points of sale 2.7% 2.9%

Insurance brokerage companies 3,9 % 3.1%

Other sales channels 3.1% 2.0%

Banks and post offices 2.4% 2.1%

Roadworthiness test providers 1.0% 1.2% H1 2021 H1 2020

* Includes premium written by insurance intermediaries

The Triglav Group insurance subsidiaries (excluding Pozavarovalnica Triglav Re) booked EUR 697.7 million in non-consolidated gross written premium, up by 9% relative to the same period last year.

Pozavarovalnica Triglav Re posted a total of EUR 121.0 million in gross written reinsurance premium, up by 6% relative to 2020. Pozavarovalnica Triglav Re recorded the highest growth in fire and natural disaster insurance (transactions outside and within the Group), goods in transit insurance (transactions outside the Group) and credit and suretyship insurance (transactions within the Group). Transactions within and outside the Group experienced a 9% and 1% premium growth, respectively. The highest premium growth was recorded by Pozavarovalnica

Triglav Re in the markets of Southeast Asia (Thailand), Central Europe (Austria, Switzerland and Germany), Spain and Portugal.

Gross written insurance, coinsurance and reinsurance premiums in H1 2021 by Triglav Group insurance company

Gross written premium Index Share Life and Life and Insurance company Non-life pension Total Non-life pension Total H1 2021 Zavarovalnica Triglav* 341,465,521 96,455,170 437,920,691 110 110 110 62.8%

Triglav, Zdravstvena zavarovalnica 99,351,138 99,351,138 101 0 101 14.2% Triglav, pokojninska družba 17,003,231 17,003,231 0 105 105 2.4% Triglav Osiguranje, Zagreb 49,762,961 4,109,551 53,872,512 131 105 128 7.7% Triglav Osiguranje, Belgrade 34,427,980 3,407,439 37,835,419 111 114 112 5.4%

Lovćen Osiguranje, Podgorica 17,032,281 17,032,281 107 0 107 2.4% Triglav Osiguranje, Sarajevo 9,416,813 6,804,535 16,221,348 104 124 111 2.3%

Triglav Osiguranje, Banja Luka 3,111,048 3,111,048 107 0 107 0.4% Triglav Osiguruvanje, Skopje 11,917,484 11,917,484 104 0 104 1.7% Lovćen životna osiguranja, Podgorica 2,277,408 2,277,408 0 108 108 0.3% Triglav Osiguruvanje Život, Skopje 1,195,960 1,195,960 0 283 283 0.2% Total 566,485,226 131,253,294 697,738,520 109 110 109 100.0%

Pozavarovalnica Triglav Re 120,970,458 120,970,458 106 0 106 Consolidation eliminations -82,099,428 -5,510,823 -87,610,251 108 153 110 Total consolidated 605,356,256 125,742,471 731,098,727 109 109 109

*The insurance company data already include the pre-consolidation adjustments

2.3.1 Non-life insurance

In the non-life insurance segment, the Triglav Group's insurance subsidiaries charged EUR 566.5 million in non-consolidated written premium, a 9% increase compared to the same period last year. Premium growth was recorded in most non-life insurance classes, with the exception of accident and motor vehicle liability insurance.

In total written premium, motor vehicle insurance (comprehensive car insurance and motor vehicle liability insurance) remained the largest insurance class with a 26.6% share. Its share is lower by 2.3 percentage points, while its premium increased by 1% to EUR 185.7 million. A total of EUR 96.8 million was generated by motor vehicle liability insurance, down by 1% relative to the preceding year. The decrease in premium was mostly a result of a 17% decline in premium written by Triglav Osiguranje, Belgrade due to the company's strategic decision to maintain the profitability of this insurance portfolio with increased risk selection. Lower premium was also written by Triglav Osiguranje, Banja Luka (a lower number of concluded insurance policies) and Zavarovalnica Triglav (a decline in international road carrier’s liability insurance premium due to the COVID-19 pandemic, the withdrawal of transport companies from Serbia and Bosnia and Herzegovina and the non-renewal of a major policyholder’s insurance contract). Other insurance subsidiaries saw an increase in written premium.

The Group collected EUR 88.8 million in comprehensive car insurance premium, an increase of 2% compared to the year before. With the exception of Lovćen Osiguranje, premium growth was recorded by all insurance subsidiaries. The strongest growth in written premium was observed in Triglav Osiguranje, Banja Luka (index 116) and Triglav Osiguranje, Belgrade (index 112), which resulted from effective sales through leasing companies, the acquisition of new policyholders and the increased scope of insurance coverage with certain existing policyholders. The parent growth achieved a 1% premium growth and represented 85% of the Group’s total written premium.

Real property insurance premium (fire and natural disaster insurance and other damage to property insurance) rose by 23% to EUR 167.7 million, thereby increasing its share in total written premium to 24.0%. A 30% premium growth was recorded in other damage to property insurance and a 9% premium growth in fire and natural disaster insurance. High premium growth was seen in most insurance subsidiaries. The highest growth was achieved by Triglav Osiguranje, Zagreb (index 167), Triglav Osiguranje, Belgrade (index 147) and Zavarovalnica Triglav (index 118) by attracting new policyholders and increasing the scope of insurance coverage with existing policyholders. While the Croatian and Serbian insurers achieved high premium growth primarily in animal and crop insurance, the parent company (73% share in total written premium) achieved high growth mainly in combined non-life insurance, computer insurance and earthquake insurance.

In health insurance, EUR 105.1 million was collected in written premium, up by 2% relative to the corresponding period last year. The majority (EUR 99.4 million) was charged by Triglav, Zdravstvena zavarovalnica, which recorded a 1% increase in written premium. The bulk of its premium was accounted for by supplemental health insurance, in addition to being successful in the sale of additional health insurance products. High premium growth was recorded by Triglav Osiguranje, Zagreb, Triglav Osiguranje, Sarajevo, Triglav Osiguranje, Belgrade and Triglav Osiguruvanje, Skopje by attracting new policyholders.

In general liability insurance, the Group generated EUR 35.4 million in written premium, up by 10% relative to the year before. Zavarovalnica Triglav, accounting for 78% of total premium, saw a 10% growth in written premium compared to the preceding year, predominantly as a result of high premium growth in product liability insurance, directors and officers liability insurance and freight forwarder liability insurance in international traffic. A high premium growth was also seen at Triglav Osiguranje, Zagreb and Lovćen Osiguranje, Podgorica by attracting new policyholders and increasing the scope of insurance coverage with existing policyholders.

Accident insurance premium amounted to EUR 20.2 million, down by 1% (representing 2.9% of total written premium). Lower premium growth was recorded by Triglav Osiguruvanje, Skopje (the renewal of some policies of major policyholders at the end of 2020), Triglav Osiguranje, Sarajevo (a decline in group accident insurance premium) and the parent company (a drop in premium of accident insurance for guests and tourists due to the COVID-19 pandemic, accident insurance for consumers and subscribers due to the termination of cooperation with a major policyholder and a lower premium for the largest insurance subclasses, i.e. group accident insurance and AO-plus insurance). Other insurance subsidiaries saw an increase in written premium.

Credit insurance premium amounted to EUR 13.6 million, up by 14% (representing 1.9% of total written premium). Zavarovalnica Triglav’s written premium, which accounted for 74% of total written premium, grew by 13%. The main reason for this trend is mainly the high growth of the commodity credit insurance premium (export credit insurance and domestic trade credit insurance) due to the acquisition of new policyholders and the increase in the consumer credit insurance premium. High premium growth was also achieved by the majority of the remaining insurance subsidiaries selling these insurance products.

Premium from other non-life insurance (representing 5.6% of total written premium) increased by 29% to EUR 38.8 million. With the exception of Lovćen Osiguranje, other insurance subsidiaries recorded premium growth, the highest of which was seen at Zavarovalnica Triglav, Triglav Osiguranje, Banja Luka and Triglav Osiguranje, Zagreb. The parent company achieved a good result in marine insurance (high growth of international comprehensive marine insurance), goods in transit insurance (fronting insurance premium growth in in international transport insurance) and aircraft insurance (premium growth resulting from effective cooperation through an intermediary). In Triglav Osiguranje, Banja Luka, high premium growth

resulted from premium growth achieved in assistance insurance and goods in transit insurance (acquisition of new policyholders), while in Triglav Osiguranje, Zagreb it resulted from premium growth in marine insurance (higher sales via an agency and acquisition of a major policyholder) and aircraft insurance (drone insurance).

2.3.2 Life and pension insurance

The Triglav Group charged a total of EUR 131.3 million in non-consolidated gross written premium from life and pension insurance, an increase of 10% relative to the corresponding period in 2020. Life and pension insurance represented 18.8% of total non-consolidated gross written premium, up by 0.1 percentage point compared to the preceding year.

Life insurance premium (traditional life, annuity, pension annuity and voluntary pension insurance) grew by 10%. With EUR 59.1 million, it accounted for 45.0% of total life and pension insurance premium. Strong premium growth was seen in Triglav Osiguranje, Sarajevo (effective sales via bank sales channels), Triglav Osiguruvanje Život, Skopje (effective sales via the internal sales network and banks) and Triglav Osiguranje, Belgrade (effective sales via the bank sales channel). The parent company's premium was 7% higher than in the previous year, primarily due to higher premium payments in whole life insurance, voluntary pension insurance and pension annuity insurance.

Unit-linked life insurance premium (life insurance linked to the units of investment funds) rose by 10% compared to the preceding year and amounted to EUR 63.0 million. This insurance class accounted for 48.0% of total written life and pension insurance premium. Zavarovalnica Triglav achieved 12% growth with higher premium payments made through its own sales network and banks, while Triglav Osiguranje, Zagreb achieved a 19% growth due to increased sales via the agency and capitalised policies. The premium volume of Triglav, pokojninska družba increased by 5%, predominantly as a result of higher premium payments in life cycle guarantee funds.

Capital redemption insurance (supplemental voluntary pension insurance) increased by 10% relative to the same period last year and amounted to EUR 9.2 million (representing 7.0% of total life and pension insurance premium). The growth stemmed from transfers of assets from other insurance companies and higher regular payments of supplemental voluntary pension insurance premium at the parent company.

Non-consolidated gross written insurance, coinsurance and reinsurance premiums of the Triglav Group insurance companies (excluding Pozavarovalnica Triglav Re) by insurance class Gross written premium Index Share H1 2021/ Insurance class H1 2021 H1 2020 H1 2020 H1 2021 Accident insurance 20,198,581 20,433,225 99 2.9% Health insurance 105,088,192 103,341,841 102 15.1% Comprehensive car insurance 88,837,398 87,044,575 102 12.7% Real property insurance 167,719,027 136,416,986 123 24.0% Motor liability insurance 96,831,162 97,401,895 99 13.9% General liability insurance 35,374,491 32,125,770 110 5.1% Credit insurance 13,592,185 11,957,940 114 1.9% Other non-life insurance 38,844,191 30,126,618 129 5.6% Non-life insurance 566,485,227 518,848,850 109 81.2% Life insurance 59,075,727 53,601,304 110 8.5% Unit-linked life insurance* 62,981,156 57,261,060 110 9.0% Capital redemption insurance 9,196,410 8,363,953 110 1.3% Life and pension insurance 131,253,293 119,226,317 110 18.8% Total 697,738,520 638,075,167 109 100.0% *According to the definition of the Insurance Supervision Agency, premiums of Triglav, pokojninska družba are included in unit-linked life insurance.

Gross written insurance, coinsurance and reinsurance premiums of Zavarovalnica Triglav by insurance class Gross written premium Index Share H1 2021/ Insurance class H1 2021 H1 2020 H1 2020 H1 2021 Accident insurance 13,520,876 13,854,567 98 3.1% Health insurance 479,217 624,004 77 0.1% Comprehensive car insurance 75,206,316 74,203,092 101 17.2% Real property insurance 123,083,948 104,739,861 118 28.1% Motor liability insurance 63,112,467 63,546,371 99 14.4% General liability insurance 27,630,801 25,101,207 110 6.3% Credit insurance 9,990,442 8,856,846 113 2.3% Other non-life insurance 28,423,888 20,850,790 136 6.5% Non-life insurance 341,447,955 311,776,738 110 78.0% Life insurance 43,116,565 40,221,176 107 9.8% Unit-linked life insurance 44,142,195 39,495,908 112 10.1% Capital redemption insurance 9,196,410 8,363,953 110 2.1% Life and pension insurance 96,455,170 88,081,037 110 22.0% Total 437,903,125 399,857,775 110 100.0%

4.4 Gross claims paid

Consolidated gross claims paid of the Triglav Group, which Gross claims paid were 5% comprise claim handling expenses, income from collected higher than in the same subrogation receivables and gross claims paid from inward period last year. reinsurance, totalled EUR 347.6 million, an increase of 5% relative to the corresponding period last year. In the largest segment, i.e. non-life insurance, gross claims paid amounted to EUR 172.8 million, down by 2%. Gross claims paid increased in the life and pension insurance segment by 10% (EUR 98.2 million) and in the health insurance segment by 16% (EUR 76.5 million). The periodic plan was 93% fulfilled.

Consolidated gross claims paid in H1 2021 compared to H1 2020

The Triglav Group insurance subsidiaries (excluding Pozavarovalnica Triglav Re) posted a total of EUR 334.5 million in non-consolidated gross claims paid, up by 7%. High growth in gross claims paid was recorded by most insurance subsidiaries, with the highest seen in Triglav, pokojninska družba, Lovćen životna osiguranja and Triglav Osiguranje, Banja Luka. The

movement of gross claims paid in the remaining insurance subsidiaries is shown in the table below.

Gross claims paid by Pozavarovalnica Triglav Re totalled EUR 33.1 million, a decrease of 1% compared to the preceding year. A 15% growth in gross claims paid was seen in transactions within the Group, whereas a decrease of 10% in gross claims paid was recorded in transactions outside the Group. The decline in gross claims paid in transactions outside the Group was predominantly due to lower payouts of other damage to property insurance (payments of large claims related to Japanese typhoons in the first half of 2020) and marine insurance (payments of large claims in the South Korean market in 2020). The increase in gross claims paid within the Group was mainly due to settled claims in fire and natural disaster insurance and other damage to property insurance based on a contract with the parent company, which covers the annual claims aggregate.

Gross claims paid in H1 2021 by insurance company of the Triglav Group

Gross claims paid Index Share

Life and Life and Insurance company Non-life pension Total Non-life pension Total H1 2021 Zavarovalnica Triglav* 111,166,285 81,744,214 192,910,499 96 104 99 57.7%

Triglav, Zdravstvena zavarovalnica 76,520,250 76,520,250 116 0 116 22.9% Triglav, pokojninska družba 10,767,176 10,767,176 0 148 148 3.2% Triglav Osiguranje, Zagreb 17,615,801 3,829,207 21,445,008 124 154 128 6.4% Triglav Osiguranje, Belgrade 9,972,041 2,952,101 12,924,142 99 170 110 3.9%

Lovćen Osiguranje, Podgorica 7,449,174 7,449,174 108 0 108 2.2% Triglav Osiguranje, Sarajevo 3,271,937 2,036,847 5,308,784 104 151 118 1.6%

Triglav Osiguranje, Banja Luka 989,125 989,125 141 0 141 0.3% Triglav Osiguruvanje, Skopje 4,234,565 4,234,565 104 0 104 1.3% Lovćen životna osiguranja, Podgorica 1,728,258 1,728,258 0 144 144 0.5% Triglav Osiguruvanje Život, Skopje 244,372 244,372 0 138 138 0.1% Total 231,219,178 103,302,175 334,521,353 105 112 107 100.0%

Pozavarovalnica Triglav Re 33,125,816 33,125,816 99 0 99 Consolidation eliminations -14,976,582 -5,080,207 -20,056,789 118 157 126 Total - consolidated 249,368,412 98,221,968 347,590,380 103 110 105

* The insurance company data already include the pre-consolidation adjustments.

2.3.3 Non-life insurance

Non-consolidated gross claims paid in non-life insurance amounted to EUR 231.2 million, an increase of 5% relative to the preceding year. The profit level in the reporting period was also affected by some major loss events, which is described in greater detail in Section 4.1 The macroeconomic environment and environmental impact on the operations.

In health insurance, gross claims paid rose by 17% to EUR 78.9 million, representing 23.6% of total gross claims paid. The majority (EUR 76.5 million) is accounted for by gross claims paid of Triglav, Zdravstvena zavarovalnica, which increased by 16% primarily due to last year's pandemic-related shortfall in healthcare services. The majority of the remaining insurance subsidiaries selling these insurance products also recorded a high growth in gross claims paid. Equalisation scheme expenses increased by 15% to EUR 3.6 million.

Gross claims paid in motor vehicle liability insurance of EUR 44.1 million remained at approximately the same level as in 2020 (index 100). They represented 13.2% of the Group’s total gross claims paid. A decline in gross claims paid was recorded by Triglav Osiguruvanje, Skopje, Triglav Osiguranje, Sarajevo and the parent company, predominantly due to a smaller number of reported or settled claims. Gross claims paid in comprehensive car insurance of EUR 42.2 million remained at approximately the same level as the year before (index 100). They

represented 12.6% of the Group’s total gross claims paid. Most insurance subsidiaries recorded lower gross claims paid as a result of a lower number of reported claims. Growth was recorded only by Triglav Osiguranje, Banja Luka (index 120), Triglav Osiguranje, Zagreb (index 109) and Triglav Osiguranje, Sarajevo (index 105) as a result of the payment of some large individual claims and higher population mobility compared to the same period last year.

In real property insurance, gross claims paid amounted to EUR 35.8 million, up by 6% compared to the preceding year (representing 10.7% of total gross claims paid). Most insurance subsidiaries saw high growth in gross claims paid, the highest of which was recorded by Triglav Osiguranje, Zagreb (growth in claims due to earthquakes in 2020 and high payments in animal insurance), Triglav Osiguranje, Belgrade (a large increase in animal insurance claims and payment of several large claims) , Triglav Osiguruvanje, Skopje (payment of two large claims) and Triglav Osiguranje, Sarajevo (payment of one large claim). Gross claims paid at the parent company were lower by 5% (representing 72% of real property insurance claims) mainly due to a lower number of reported claims in fire insurance of civil risks and contents insurance, because there were no major CAT events.

Gross claims paid from accident insurance increased by 21% to EUR 10.9 million. Their high growth was primarily a result of higher gross claims paid at Zavarovalnica Triglav (higher payouts in group accident insurance and accident insurance for children and pupils) and Lovćen Osiguranje (higher growth in payouts of accident insurance claims).

Gross claims paid in general liability insurance amounted to EUR 6.4 million, down by 31% compared to the year before. This decrease was primarily a result of a 41% decline in gross claims paid by the parent company (which accounted for 78% of gross claims paid by the Group in this insurance class) due to the payment of a large claim in directors and officers liability insurance. The decline in gross claims paid was also recorded by Triglav Osiguruvanje, Skopje, while other insurance subsidiaries recorded high growth.

Gross claims paid in credit insurance decreased by 42% to EUR 2.4 million. A high decline was seen at Zavarovalnica Triglav (index 62), which represents the majority of claims in this insurance class (an 80% share), Triglav Osiguranje, Zagreb (index 23) and Triglav Osiguranje, Belgrade (index 32). At the parent company, the lower payout was predominantly due to smaller payouts in export credit insurance (a large claim was paid out last year) and consumer loan insurance and credit insurance for small businesses (a lower number of reported claims mainly due to the deferred payment of borrowers' liabilities in accordance with the Act Determining the Intervention Measure of Deferred Payment of Borrowers’ Liabilities).

Gross claims paid in other non-life insurance dropped by 1% to EUR 10.5 million. Most insurance subsidiaries recorded a high decrease in gross claims paid, the highest among them Triglav Osiguranje, Belgrade (last year's payment of large marine insurance claims and a lower number of assistance insurance claims due to the pandemic) and Lovćen Osiguranje (last year's payment of a large marine insurance claim). The parent company, which accounts for 84% of other non- life insurance claims, recorded a 13% increase in gross claims paid primarily due to the payment of one large claim from insurance for business interruption due to fire (an out-of-court settlement for the claim incurred in 2017) and suretyship insurance.

2.3.4 Life and pension insurance

Non-consolidated gross claims paid in the life and pension insurance segment grew by 12% to EUR 103.3 million. Their share in total non-consolidated claims paid increased by 1.3 percentage points to 30.9%.

The bulk of total claims paid was accounted for by life insurance (traditional life, annuity, pension annuity and voluntary pension insurance). They equalled EUR 62.0 million and remained at a level approximately equal to the preceding year (index 100). Gross claims paid by the parent company were 7% lower due to lower payouts of mathematical provisions on capitalised traditional life insurance policies and lower payouts due to surrenders and advances. Other insurance subsidiaries recorded a high growth in gross claims paid.

Gross claims paid in unit-linked life insurance rose by 40% to EUR 38.6 million. High growth was recorded by all three insurance subsidiaries; at Triglav, pokojninska družba (index 148), growth mainly resulted from an increase in the number of retirements and thus transfers to annuity funds and an increase in transfers of funds to other pension insurance providers; at Triglav Osiguranje, Zagreb (index 138), growth resulted from large payouts due to maturity; at the parent company (index 137), growth resulted mainly from large payouts due to surrenders.

Gross claims paid in capital redemption insurance (supplemental voluntary pension insurance) decreased by 7%, primarily as a result of lower payouts due to withdrawals from insurance contracts and surrenders pursuant to the Pension and Disability Insurance Act in the parent company.

Non-consolidated gross claims paid by insurance companies of the Triglav Group (excluding Pozavarovalnica Triglav Re) by insurance class Gross claims paid Index Share H1 2021/ Insurance class H1 2021 H1 2020 H1 2020 H1 2021 Accident insurance 10,868,872 8,947,386 121 3.2% Health insurance 78,921,679 67,603,932 117 23.6% Comprehensive car insurance 42,171,880 42,238,945 100 12.6% Real property insurance 35,799,601 33,635,019 106 10.7% Motor liability insurance 44,131,637 44,140,216 100 13.2% General liability insurance 6,425,536 9,353,367 69 1.9% Credit insurance 2,421,266 4,165,048 58 0.7% Other non-life insurance 10,478,707 10,593,712 99 3.1% Non-life insurance 231,219,178 220,677,625 105 69.1% Life insurance 61,999,807 62,059,771 100 18.5% Unit-linked life insurance* 38,597,463 27,541,659 140 11.5% Capital redemption insurance 2,704,905 2,918,933 93 0.8% Life and pension insurance 103,302,175 92,520,363 112 30.9% Total 334,521,353 313,197,988 107 100.0% * According to the definition of the Insurance Supervision Agency, gross claims paid by Triglav, pokojninska družba are included in unit-linked life insurance

Gross claims paid of Zavarovalnica Triglav by insurance class Gross claims paid Index Share H1 2021/ Insurance class H1 2021 H1 2020 H1 2020 H1 2021 Accident insurance 5,912,008 4,807,030 123 3.1% Health insurance -52,793 55,977 -94 0.0% Comprehensive car insurance 34,768,009 35,010,301 99 18.0% Real property insurance 25,750,960 27,013,418 95 13.3% Motor liability insurance 28,986,934 29,571,750 98 15.0% General liability insurance 5,014,084 8,439,890 59 2.6% Credit insurance 1,940,323 3,134,665 62 1.0% Other non-life insurance 8,846,761 7,845,455 113 4.6% Non-life insurance 111,166,286 115,878,486 96 57.6% Life insurance 52,056,798 55,722,822 93 27.0% Unit-linked life insurance 26,982,510 19,646,228 137 14.0% Capital redemption insurance 2,704,905 2,918,933 93 1.4% Life and pension insurance 81,744,213 78,287,983 104 42.4% Total 192,910,499 194,166,469 99 100.0%

4.5 Gross operating expenses

Total consolidated gross operating expenses of the Triglav The share of insurance business Group amounted to EUR 163.6 million, an increase of 10% operating expenses in written relative to the same period last year. Insurance business premium was 20.3%. expenses grew by 11% to EUR 148.2 million. Due to the impact of the pandemic in the same period last year, high growth was recorded mainly in acquisition costs, labour costs and costs of representation, advertising and trade shows, while the changed structure of investment in information technology led to higher growth in rent and lease costs. Compared to last year, the share of insurance business operating expenses in gross written premium increased by 0.4 percentage point to 20.3%. Operating expenses by insurance segment increased by 16% in the life and pension insurance segment (EUR 22.7 million) and by 11% in the non-life insurance segment (EUR 118.3 million), whereas in the health insurance segment they declined by 4% (EUR 7.1 million).

Non-insurance business expenses were 4% higher and amounted to EUR 15.5 million, primarily as a result of higher costs of payment transactions and banking services at Triglav Skladi.

Acquisition costs (fees and commissions) rose by 16% to EUR 31.6 million, predominantly as a result of their increase at Zavarovalnica Triglav, Triglav Osiguranje, Belgrade, Triglav Osiguranje, Zagreb and Triglav Osiguranje, Sarajevo. Increased acquisition costs mainly resulted from the higher number of concluded insurance policies and the increased volume of written premium from insurance policies taken out via external sales channels (contracted points of sale, brokers, agencies and banks). In contrast, a large decline was recorded at Triglav, Zdravstvena zavarovalnica, mainly due to a change in the rewarding of new clients and agents.

The 6% increase in depreciation costs in the amount of EUR 10.7 million was predominantly the consequence of higher depreciation costs of intangible fixed assets at the parent company and higher depreciation growth due to investments in hardware and software at Triglav, Zdravstvena zavarovalnica.

At 49.1%, labour costs accounted for the largest portion of total expenses, and amounted to EUR 84.5 million, up by 7% compared to the year before. This increase is mainly a result of the higher number of employees at Triglav, Zdravstvena zavarovalnica, Triglav Osiguranje, Belgrade and Triglav Osiguranje, Zagreb compared with the same period last year, as well as higher labour

costs at Zavarovalnica Triglav. At the parent company, they were mainly influenced by an increase in employees’ basic salaries and higher payments to insurance agents due to increased sale of insurance products (in the same period last year, the premium volume was affected by the COVID-19 pandemic). Costs of services provided by natural persons other than sole proprietors rose by 61%. With only a 0.5% share in total expenses, they amounted to EUR 847 thousand. Other operating expenses increased by 13% to EUR 44.5 million. Among them, due to the impact of the pandemic in the same period last year, the highest growth was achieved by the costs of representation, advertising and trade shows (higher costs of advertising, sponsorships and promotional products at the parent company and Triglav Osiguranje, Belgrade) and rent and lease costs (especially higher costs of leasing computer equipment and services at the parent company).

Acquisition costs represented 62.1% (the largest share) of total gross operating expenses of the insurance business broken down by functional group. Other operating expenses represented 26.8%, claim handling expenses 9.7% and asset management costs 1.5% of total gross operating expenses of the insurance business.

Gross operating expenses of the Triglav Group in H1 2021 by nature Gross operating expenses Index Share H1 2021/ Operating expenses by nature H1 2021 H1 2020 H1 2020 H1 2021 Acquisition costs (fees and commissions) 31,588,903 27,192,563 116 18.3% Costs of goods sold 107,295 4,756 2.256 0.1% Depreciation of operating assets 10,664,854 10,022,089 106 6.2% Labour costs 84,535,361 79,224,205 107 49.1% - wages and salaries 57,955,153 54,345,525 107 33.6% - social securities and pension insurance costs 13,021,834 12,077,488 108 7.6% - other labour costs 13,558,374 12,801,192 106 7.9% Costs of services provided by natural persons other than SPs together with pertaining taxes 846,572 526,320 161 0.5% Other operating expenses 44,528,753 39,437,246 113 25.8% - costs of entertainment, advertising, trade shows 9,409,429 7,076,171 133 5.5% - costs of material and energy 3,775,076 4,245,059 89 2.2% - maintenance costs 7,471,471 7,161,882 104 4.3% - travel expenses 1,646,454 1,668,038 99 1.0% - costs of intellectual and personal services 2,842,101 2,371,271 120 1.6% - non-income-related costs, excluding insurance 1,517,502 1,485,992 102 0.9% - costs of transport and communication services 2,628,333 2,450,753 107 1.5% - costs of insurance premiums 607,431 604,882 100 0.4% - payment transaction costs and banking services 5,021,775 4,616,510 109 2.9% - rents 3,319,530 2,180,050 152 1.9% - costs of services of professional training 682,471 397,471 172 0.4% - other costs of services 5,602,914 5,179,167 108 3.3% - long-term employee benefits 4,266 0 0 0.0% Total 172,271,738 156,407,179 110 100.0% Consolidation eliminations -8,639,242 -7,960,124 109 Total consolidated 163,632,496 148,447,055 110

Gross operating expenses of Zavarovalnica Triglav in H1 2021 by nature

Gross operating expenses Index Share H1 2021/ Operating expenses by nature H1 2021 H1 2020 H1 2020 H1 2021 Acquisition cost (fees and commissions) 16,077,756 13,818,397 116 16.4% Depreciation of operating assets 6,318,559 5,869,916 108 6.4% Labour costs 55,556,911 52,130,932 107 56.7% - wages and salaries 38,217,274 35,843,021 107 39.0% - social securities and pension insurance costs 6,463,832 5,988,535 108 6.6% - other labour costs 10,875,805 10,299,376 106 11.1% Costs of services provided by natural persons other than SPs, including related taxes 114,249 105,678 108 0.1% Other operating costs 19,905,157 16,809,070 118 20.3% - costs of entertainment, advertising, trade shows 4,232,492 2,793,192 152 4.3% - costs of material and energy 1,696,078 1,866,396 91 1.7% - maintenance costs 4,378,678 4,197,956 104 4.5% - reimbursement of labour-related costs 1,230,488 1,148,122 107 1.3% - costs of intellectual and personal services 1,137,788 809,683 141 1.2% - non-income related costs, excluding insurance 522,418 501,985 104 0.5% - costs of transport and communication services 1,416,400 1,339,726 106 1.4% - costs for insurance premiums 163,332 174,037 94 0.2% - payment transaction costs and banking services 543,016 674,167 81 0.6% - rents 2,276,086 1,377,421 165 2.3% - costs of professional training services 510,614 244,259 209 0.5% - other costs of services 1,797,767 1,682,126 107 1.8% Total 97,972,632 88,733,993 110 100.0%

4.6 Reinsurance

In the first half of 2021, the Triglav Group allocated EUR 122.5 million of reinsurance and coinsurance premiums to external equalisation, up by 31% relative to the corresponding period last year. Reinsurance premium growth was mainly the result of the increased volume of non- life insurance premium, primarily through effective sales based on the principle of freedom of movement of services, and inward reinsurance. Reinsurance premium accounted for 16.7% of total gross written insurance and coinsurance premiums. The reinsurers’ share in gross claims settled of EUR 20.6 million (index 130) was received from reinsurance.

In the reporting period, Zavarovalnica Triglav allocated EUR 101.8 million of reinsurance and coinsurance premiums to external equalisation, an increase of 28% compared to the same period in 2020. Reinsurance premium accounted for 23.2% of total gross written premium. The reinsurers’ and coinsurers’ share in gross claims settled of EUR 18.7 million (index 117) was received from reinsurance and coinsurance.

4.7 Insurance technical provisions

Gross insurance technical provisions are the basis for Total gross insurance technical balanced operations and ensure the long-term safety of provisions of the Triglav v Group insured persons. As at 30 June 2021, the Triglav Group amounted to EUR 3,221.3 had gross insurance technical provisions of EUR 3,221.3 million, an increase of 6%. million, an increase of 6% relative to. The amount of gross insurance technical provisions increased in non-life insurance (index 114), health insurance (index 115), and in life and pension insurance (index 102). As at 30 June 2021, Zavarovalnica Triglav allocated EUR 2,314.6 million to gross insurance technical provisions, up by 5% compared to the 2020 year-end.

Provisions of the Triglav Group by type as at 30 June 2021 relative to 31 December 2020: ▪ Gross unearned premium was 32% higher and amounted to EUR 454.2 million. Unearned premium from non-life insurance increased by 32% to EUR 449.8 million, unearned premium from health insurance rose by 15% to EUR 3.9 million and unearned premium from life and pension insurance grew by 4% to EUR 476 thousand. The movement of gross unearned premium corresponds to the movement and duration of gross written premium and the nature of underwritten risks. ▪ Gross claims provisions rose by 4% to EUR 670.4 million. They are formed for covering claims incurred but not settled by the end of the accounting period. Claims provisions from non- life insurance totalled EUR 634.3 million (index 104), those from life and pension insurance equalled EUR 22.6 million (index 106), and those from health insurance amounted to EUR 13.5 million (index 92). ▪ Mathematical provisions were 2% higher and amounted to EUR 2,016.0 million. Mathematical provisions for the guarantee fund backing life insurance totalled EUR 1,438.9 million (index 99), while insurance technical provisions for unit-linked life insurance contracts amounted to EUR 577.2 million (index 113). They increased due to the growth in the price of fund units. Zavarovalnica Triglav’s mathematical provisions of EUR 1,520.5 million accounted for the bulk (index 102), of which mathematical provisions for the guarantee fund backing life insurance amounted to EUR 1,017.2 million (index 98) and insurance technical provisions for unit-linked life insurance contracts equalled EUR 503.3 million (index 112). ▪ Provisions for bonuses and discounts grew by 28% to EUR 36.0 million, mainly as a result of additional insurance technical provisions created due to the COVID-19 pandemic at Triglav, Zdravstvena zavarovalnica. ▪ Other insurance technical provisions totalled EUR 44.7 million, down by 7% primarily due to their reduction at Zavarovalnica Triglav. The main reason was the decrease in provisions as a result of the liability adequacy test for life insurance.

Gross insurance technical provisions of the Triglav Group as at 30 June 2021

Gross insurance technical provisions Index 30 June 2021 31 December 2020 2021/2020 Unearned premium 454,171,853 344,760,927 132 Mathematical provisions 2,016,026,040 1,967,008,673 102 Claims provisions 670,447,083 645,331,168 104 Provisions for bonuses and discounts 36,017,880 28,195,354 128 Other insurance technical provisions 44,651,794 47,917,732 93 Total 3,221,314,650 3,033,213,854 106

Gross insurance technical provisions of Zavarovalnica Triglav as at 30 June 2021

Gross insurance technical provisions Index 30 June 2021 31 December 2020 2021/2020 Unearned premium 309,796,857 235,190,816 132 Mathematical provisions 1,520,475,664 1,490,283,181 102 Claims provisions 443,291,069 430,259,621 103 Provisions for bonuses and discounts 23,837,107 23,837,107 100 Other insurance technical provisions 17,160,500 19,470,754 88 Total 2,314,561,197 2,199,041,479 105

4.8 Structure of financial investments

The Triglav Group pursues a relatively conservative investment policy in order to achieve an adequate return on its investment portfolio, with an emphasis on the security and liquidity of its investments. In its investment, the Group pursues the goal of achieving a high credit rating of the entire portfolio. In the first half of the year, the portfolio structure was not significantly changed, but minor adjustments were made to some shares of individual asset classes.

The Group’s financial investments including investment property and investments in associates totalled EUR 3,557.6 million as at 30 June 2021, up by 2% relative to 31 December 2020. Their share in the Group’s total assets declined by 3.5 percentage points to 80.9%.

Financial investments (including investment properties and investments in associates) of the Triglav Group as at 30 June 2021 and 31 December 2020

Financial investments Index Share

30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020 Investment property 78,612,200 78,977,800 100 2.2% 2.3% Shares in associates 32,195,528 28,237,714 114 0.9% 0.8% Shares and other floating-rate securities 244,623,420 220,367,991 111 6.9% 6.3% Debt and other fixed return securities 2,542,483,366 2,572,533,950 99 71.5% 73.6% Loans given 4,363,158 4,218,279 103 0.1% 0.1% Deposits with banks 65,561,281 72,474,217 90 1.8% 2.1% Other financial investments 6,666,686 6,462,139 103 0.2% 0.2% Financial investments of reinsurance companies in reinsurance contracts with cedents 11,820,007 11,210,682 105 0.3% 0.3% Derivatives 27,034 113,301 24 0.0% 0.0% Unit-linked insurance contract investments 571,250,903 501,808,980 114 16.1% 14.4% Total 3,557,603,583 3,496,405,053 102 100.0% 100.0%

The largest share of the investment portfolio, 71.5%, is represented by bonds invested in developed markets, most of which have a high credit rating. Compared to 2020 year-end, the value of the bond portfolio decreased by 1% to EUR 2,542.5 million, while its share in the total portfolio fell by 2.1 percentage points.

The growth of share prices in the first six months affected both the value of the Group's equity investments and the value of unit-linked life insurance contract investments. The volume of equity investments grew by 11% to EUR 244.6 million, and their share in the total portfolio increased by 0.6 percentage point to 6.9%. The value of unit-linked life insurance contract investments rose by 14% to EUR 571.3 million, and their share in the total portfolio grew by 1.7 percentage points to 16.1%. The majority is accounted for by assets invested in mutual funds of the policyholders' choice and mostly in funds managed by Triglav Skladi.

In other asset classes, the volume of deposits with banks decreased slightly, whereas the volume of investments in associates increased; there were no other significant changes in the reporting period.

Structure of financial investments of the Triglav Group as at 30 June 2021

0.9% 0.6% 1.8% 2.2% 6.9% Debt and other fixed return securities

Unit-linked insurance contract investments 16.1% Shares and other floating-rate securities

Investment property

Deposits with banks

Shares in associates

Other 71.5%

The structure of debt and equity portfolios is presented in detail below.

The shares of bonds in the Group's bond portfolio did not change significantly in terms of issuer sector compared to the 2020 year-end. Government bonds represent the bulk (65.5%) and are followed by financial bonds accounting for 17.6% and corporate bonds accounting for 16.8%.

Debt securities of the Triglav Group by issuer sector

Debt securities Index Share Issuer sector 30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020 Government 1,664,681,346 1,682,830,112 99 65.5% 65.4% Financial 448,555,044 461,605,954 97 17.6% 17.9% Corporate 428,212,658 427,038,594 100 16.8% 16.6% Shared 1,034,318 1,059,291 98 0 % 0 % Total 2,542,483,366 2,572,533,951 99 100.0% 100.0%

Note: Unit-linked insurance contract investments data excluded.

The bond portfolio’s investments are globally diversified and of high quality. A total of 90.7% of its investments have an investment grade credit rating of at least “BBB” (compared to 89.6% as at 31 December 2020) and 60.0% have at least the “A” credit rating (compared to 61.3% as at 31 December 2020).

Debt securities of the Triglav Group by credit rating

Debt securities Index Share Credit rating 30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020 AAA 379,299,474 463,012,284 82 14.9% 18.0% AA 400,571,825 383,681,511 104 15.8% 14.9% A 746,805,533 729,748,691 102 29.4% 28.4% BBB 778,448,486 728,788,550 107 30.6% 28.3% Below BBB 198,538,134 200,940,476 99 7.8% 7.8% Not rated 38,819,914 66,362,438 58 1.5% 2.6% Total 2,542,483,366 2,572,533,951 99 100.0% 100.0%

Note: Unit-linked insurance contract investments data excluded.

In terms of issuer country, the majority of the portfolio is accounted for by debt securities of issuers from countries with a high credit rating, which ensures the Group appropriate security and liquidity. Certain changes in exposure to individual countries are a result of price fluctuations and tactical adjustments of some positions.

Debt securities of the Triglav Group by issuer country Debt securities Index Share Country of issuer 30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020

Slovenia 410,815,369 394,525,822 104 16.2% 15.3% Germany 319,039,268 399,195,893 80 12.5% 15.5% France 225,113,560 191,067,434 118 8.9% 7.4% Spain 146,955,459 139,353,731 105 5.8% 5.4% International financial institutions 139,736,581 106,856,495 131 5.5% 4.2% USA 133,215,930 123,650,851 108 5.2% 4.8% Italy 130,808,685 123,487,125 106 5.1% 4.8% Croatia 105,158,732 106,124,399 99 4.1% 4.1% Netherlands 95,495,851 117,712,265 81 3.8% 4.6% Austria 65,021,065 85,172,491 76 2.6% 3.3% Other 771,122,866 785,387,446 98 30.3% 30.5% Total 2,542,483,366 2,572,533,951 99 100.0% 100.0% Note: Unit-linked insurance contract investments data excluded.

Equity investments include shares and other variable-return securities and investments in associates. They represent 7.8% of the Group's total portfolio, up by 0.7 percentage point relative to 31 December 2020; their value increased by 11% to EUR 276.8 million predominantly due to share price growth in the first six months of 2021.

Equity investments also include the category other funds, which comprises mostly alternative funds, among which alternative funds managed by the associate Trigal hold a significant share. The share of other funds represents 25.8% of equity investments.

Equity investments of the Triglav Group by investment type

Equity investments Index Share Equity investment type 30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020

Shares 113,949,808 91,531,483 124 41.2% 36.8% Equity funds 50,325,181 58,121,022 87 18.2% 23.4% Bond funds 37,710,744 30,288,801 125 13.6% 12.2% Money market funds 3,429,488 3,436,410 100 1.2% 1.4% Other funds 71,403,725 65,227,991 109 25.8% 26.2% Total 276,818,946 248,605,707 111 100.0% 100.0%

Equity investments of the Triglav Group by geographic area

Equity investments Index Share Geographic area 30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020 Slovenia 95,497,743 80,365,862 119 34.5% 32.3% Developed markets 164,816,465 150,493,047 110 59.5% 60.5% Developing markets 12,129,570 13,244,477 92 4.4% 5.3% Balkans 4,375,168 4,502,320 97 1.6% 1.8% Total 276,818,946 248,605,707 111 100.0% 100.0%

At Zavarovalnica Triglav, financial investments, including investment property, amounted to EUR 2,651.0 million, up by 1% compared to 31 December 2020.

Financial investments (including investment properties and investments in subsidiaries and associates) of Zavarovalnica Triglav as at 30 June 2021 and 31 December 2020

Financial investments Index Share

30 June 2021 31 December 2020 2021/2020 30 June 2021 31 Dec. 2020 Investment property 44,101,845 44,451,276 99 1.7% 1.7% Investments in subsidiaries and associates 167,284,894 163,675,415 102 6.3% 6.2% Shares and other floating rate securities 129,285,096 113,586,570 114 4.9% 4.3% Debt and other fixed return securities 1,780,288,521 1,837,372,253 97 67.2% 69.8% Loans given 7,892,544 9,294,087 85 0.3% 0.4% Deposits with banks 19,536,601 19,567,302 100 0.7% 0.7% Other financial investments 3,664,058 3,654,860 100 0.1% 0.1% Derivatives 0 113,301 0 0.0% 0.0% Unit-linked insurance contract investments 498,966,604 442,292,488 113 18.8% 16.8% Total 2,651,020,163 2,634,007,552 101 100.0% 100.0%

4.9 Asset management

Asset management is one of the two strategic activities of the Triglav Group. It comprises the management of the parent company's own insurance portfolios (assets backing liabilities and guarantee funds), saving of clients through the Group's life and pension insurance companies, investment management by Trigal, and the management of clients' assets in mutual funds and discretionary mandates by Triglav Skladi. The value of assets under management of the Triglav Group as at 30 June 2021 compared to 31 December 2020: ▪ own insurance portfolio: EUR 2,986 million (index 100), ▪ mutual funds and discretionary mandate assets at Triglav Skladi: EUR 1,392 million (index 120), ▪ investment management at Trigal: EUR 86.2 million (index 163).

Asset and investment fund management market

As at 30 June 2021, five management companies operated in Slovenia, which managed the net asset value of EUR 3.9 billion in mutual funds, which is 20% more than at the 2020 year-end. Asset growth was driven by net inflows into funds and growth in capital markets.

Triglav Skladi managed EUR 1.2 billion in mutual funds as at 30 June 2021, up by 18% relative to 31 December 2020. The value of net assets under management increased by EUR 69.9 million due to net inflows and by EUR 118.0 million due to the situation in capital markets. Triglav Skladi held a 32.3% market share as at the reporting date and is thus one of the leading managers of assets in investment funds in Slovenia.

A total of six companies provided discretionary mandate services, of which three were asset management companies. The value of discretionary mandate assets managed by said companies amounted to EUR 1.6 billion as at 30 June 2021, an increase of 24% relative to the end of 2020. Triglav Skladi increased the value of assets in this segment by 50%; net inflows amounted to EUR 34.8 million, while the effect of capital markets increased the value of net assets under management by EUR 12.9 million. The company's market share increased by 1.5 percentage points to 9.0%.

5. Financial result and financial position

5.1 Financial result

In the first six months of 2021, the Triglav Group In the six months of 2021, the performed well, recording a profit before tax of EUR 56.2, Triglav Group posted profit million, an increase of 39% relative to the same period last before tax of EUR 56.2 million. year. The higher profit is primarily a result of higher growth in net premium income in all insurance segments, lower growth in net claim incurred from non- life insurance, lower additional insurance technical provisions on account of the liability adequacy test and the reduction of the internally set maximum interest rate for life insurance compared to the same period last year. Furthermore, profit was higher due to the growth of income from the Group’s non-insurance business. Net profit amounted to EUR 47.0 million, up by 40% compared to the preceding year. Annualised net return on equity increased by 2.6 percentage points to 11.2%

Zavarovalnica Triglav posted a profit before tax of EUR 32.3 million, an increase of 2% relative to the corresponding period of 2020. Net profit amounted to EUR 26.4 million and remained at a level approximately equal to the preceding year (index 100).

The combined ratio of the Triglav Group was 89.6%, down by 2.9 percentage points compared to the preceding year. The combined ratio shows the profitability of operations in the non-life and health insurance segments. Any value of this ratio below 100 means that the non-life and health insurance portfolios as the core business (excluding return on investments) are earning a profit. The favourable trend is a result of the improved claims ratio because the growth of net premium income was higher than the growth of net claims incurred and because of a decrease in changes in other insurance technical provisions (additional provisions for unexpired risks of health insurance contracts made last year due to the pandemic).

Combined ratio in non-life insurance of the Triglav Group by insurance company Insurance Group H1 2021 H1 2020 Change Zavarovalnica Triglav 84.9% 87.6% -2.8 p.p. Triglav, Zdravstvena zavarovalnica 95.5% 95.8% -0.3 p.p. Pozavarovalnica Triglav Re 88.7% 97.3% -8.6 p.p. Triglav Osiguranje, Zagreb 98.1% 119.8% -21.7 p.p. Triglav Osiguranje, Belgrade 90.2% 84.4% 5.8 p.p. Lovćen Osiguranje, Podgorica 96.9% 90.8% 6.1 p.p. Triglav Osiguranje, Sarajevo 94.9% 92.7% 2.2 p.p. Triglav Osiguranje, Banja Luka 106.3% 97.9% 8.4 p.p. Triglav Osiguruvanje, Skopje 110.2% 99.4% 10.8 p.p. The Triglav Group 89.6% 92.4% -2.9 p.p.

Net premium income increased by 4% to EUR 544.1 million. Net premium income from non-life insurance grew by 4%, from life and pension insurance by 8% and from health insurance by 1%. Net premium income comprises gross written premium in the amount of EUR 731.1 million (index 109), less written premium ceded to reinsurance and coinsurance in the amount of EUR 122.5 million (index 131) and adjusted by the change in net unearned premium of EUR –64.6 million (index 114).

Net claims incurred increased by 4% to EUR 351.3 million. Net claims incurred in non-life insurance fell by 2%, whereas in health insurance they grew by 12% and in life and pension

insurance by 9%. Net claims incurred are composed of gross claims paid in the amount of EUR 347.6 million (index 105), reduced by the reinsurers' and coinsurers' shares in gross claims in the amount of EUR 20.6 million (index 130), adjusted by the change in net claims provisions of EUR 20.7 million (index 103) and increased by equalisation scheme expenses for supplemental health insurance in the amount of EUR 3.6 million (index 115).

Income from investments, including income from investments in associates, increased by 83% and reached EUR 88.2 million. Income from investments in associates amounted to EUR 916 thousand, up by 155%, and income from investments totalled EUR 87.3 million, up by 83%. Interest income was down by 21% and reached EUR 17.6 million, while gains on disposal of investments dropped by 68% to EUR 5.4 million primarily as a result of lower activity in trading in financial instruments. Other income from investments increased to EUR 64.3 million (vs. EUR 8.8 million in the same period in 2020). Other income from investments comprises changes in the fair value of EUR 9.2 million (index 224), dividends of EUR 902 thousand (index 139), other financial income of EUR 3.4 million (index 124) and net unrealised gains on unit-linked life insurance assets, which totalled EUR 50.9 million (vs. EUR 1.3 million in 2020). The latter rose predominantly due to the growth of share prices, to which the majority of policyholders' investments under these insurance contracts are tied.

Expenses from investments, including expenses from investments in associates, declined to EUR 15.6 million (vs. EUR 53.4 million in the corresponding period last year). Expenses from investments in associates amounted to EUR 73 thousand (index 42), while expenses from investments totalled EUR 15.6 million (vs. EUR 53.2 million in 2020). Losses on disposals amounted to EUR 2.9 million (index 67) and other expenses from investments totalled EUR 12.7 million (vs. EUR 47.9 million in 2020). Other expenses from investments comprise net unrealised losses on unit-linked life insurance assets totalling EUR 543 thousand (vs. EUR 29.0 million in 2020), changes in the fair value of EUR 7.7 million (index 59) and other financial expenses in the amount of EUR 4.5 million (index 77).

The Group’s rates of return on investment (excluding Return on investment was lower unit-linked insurance contract investments) totalled EUR predominantly due to lower net 16.5 million, down by 31% relative to the same period interest income and lower last year. The main reasons for the lower rates of return realised capital gains. on investment are primarily lower interest income due to low interest rates and lower realised capital gains. The rates of return on investment also impact the amount of insurance technical provisions and net profit of the Group. Profit before tax from investments is presented in the table Structure of profit before tax.

Change in other insurance technical provisions amounted to EUR –2.4 million and was lower than in the preceding year (EUR 25.4 million), mainly due to the decline in mathematical provisions and other insurance technical provisions for health insurance. Change in insurance technical provisions for unit-linked insurance contracts equalled EUR 67.5 million (vs. EUR – 20.2 million in the same period last year) due to the increase in the value of investments to which the assets of these insurance contracts are tied. Expenses for bonuses and discounts rose by 40% to EUR 13.3 million predominantly as a result of additional provisions created for bonuses and discounts at Triglav, Zdravstvena zavarovalnica due to the impact of the COVID-19 pandemic.

Operating expenses (acquisition costs and other operating expenses) totalled EUR 131.6 million, up by 12%. Acquisition costs rose by 14% and other operating expenses by 6%. The share of operating expenses of the insurance business (all functional cost groups) in gross written premium was 20.3%, up by 0.4 percentage point relative to 2020.

Other insurance income, excluding fees and commissions, amounted to EUR 4.9 million, down by 34% mainly due to lower offset foreign exchange gains from the repayment and revaluation of operating receivables and/or liabilities of Pozavarovalnica Triglav Re, which are disclosed offset as of this year. Other insurance expenses, excluding fees and commissions, amounted to EUR 8.9 million. Compared to the preceding year, they were lower by 42% predominantly due to lower assets for prevention at the parent company (the purchase of protective equipment in 2020) and lower other insurance expenses at Pozavarovalnica Triglav Re (see note at other insurance income). Net fee and commission income amounted to EUR 4.3 million (vs. EUR 1.4 million in the same period last year) and increased mainly due to the high growth of written premium ceded to reinsurance.

Other income increased by 16%, totalling EUR 22.4 million, primarily due to the growth in management fee income at Triglav Skladi. The 12% increase in other expenses (EUR 21.7 million) was mainly a result of higher other expenses at the parent company.

Individual items in the consolidated income statement of the Triglav Group for H1 2021 H1 2021 H1 2020 Index

Net premium income 544,071,791 523,073,694 104 Income from investments including income in subsidiaries and associates 88,248,435 48,194,384 183 Other income from insurance operations 25,719,206 24,944,982 103 Other income 22,359,984 19,267,365 116 Net claims incurred 351,332,873 338,251,747 104 Change in other insurance technical provisions (excluding ULI) -2,391,105 25,425,664 Change in insurance technical provisions for unit-linked insurance contracts 67,530,977 -20,198,745 Expenses for bonuses and discounts 13,346,843 9,537,868 140 Operating expenses 131,593,734 117,682,546 112 Expenses form investments including expenses in subsidiaries and associates 15,637,430 53,359,503 29 Other insurance expenses 25,420,974 31,436,622 81 Other expenses 21,684,826 19,422,799 112 Profit before tax 56,242,864 40,562,421 139 Income tax expense 9,267,734 7,064,192 131 Net profit for the accounting period 46,975,130 33,498,229 140

Structure of profit before tax of the Triglav Group*

H1 2021 H1 2020

Life and Life and Non-life pension Health Total Non-life pension Health Total Profit before tax from underwriting activities 36,930,052 6,976,914 4,938,448 48,845,414 25,528,915 5,290,246 4,808,979 35,628,140

Profit before tax from investment activities 5,620,212 -1,949,420 252,895 3,923,687 8,970,636 -4,987,442 313,710 4,296,904

Profit before tax from insurance operations 42,550,264 5,027,494 5,191,343 52,769,101 34,499,551 302,804 5,122,689 39,925,044

Profit before tax from non-insurance operations 3,473,763 637,377

Total profit before tax 56,242,864 40,562,421 *Profit from return on investment is reduced by the return guaranteed by the Group’s insurance subsidiaries to life insurance policyholders in the form of a guaranteed return determined in insurance contracts. In addition, return on investment is reduced by the increase in mathematical provisions due to the lower internally set maximum interest rate used for the valuation of life insurance liabilities.

Profit before tax of the Group’s non-life and health insurance segments amounted to EUR 47.7 million in the first half of 2021, up by EUR 8.1 million compared to the same period in the preceding year. The improved result resulted from higher profit before tax from underwriting activities, mainly due to more favourable net claims experience and higher net premium income. Profit from investments was lower than in the same period last year due to lower interest income and lower realised capital gains.

Profit before tax of the Group’s life and pension insurance segments amounted to EUR 5.0 million in the first half of 2021, up by EUR 4.7 million compared to the same period in 2020. In

the reporting period, the Group had a EUR 9.0 million lower result from the return on investment, but at the same time formed EUR 11.0 million less additional provisions on account of the liability adequacy test and the reduction of the internally set maximum interest rate compared to the same period last year. The return that the Group is required to provide for the mathematical provisions of traditional life insurance policies decreased by EUR 1.0 million. Compared to the same period last year, profit before tax from underwriting activities of the life and pension insurance segments improved by EUR 1.7 million primarily due to good results achieved by subsidiaries.

Structure of profit before tax of the Triglav Group in H1 2021 and H1 2020

11% 7%

Profit before tax from investment activities

89% 93% Profit before tax from underwritting activities

H1 2020 H1 2021

Individual items in the income statement of Zavarovalnica Triglav for H1 2021 H1 2021 H1 2020 Index Net premium income 292,097,642 283,210,102 103 Income from investments including income in subsidiaries and associates 65,625,095 32,662,419 201 Other income from insurance operations 23,033,612 20,732,938 111 Other income 4,058,938 3,686,177 110 Net claims incurred 186,416,641 187,831,876 99 Change in other insurance technical provisions -5,889,930 4,866,528 Change in insurance technical provisions for unit-linked insurance contracts 55,073,717 -23,335,482 Expenses for bonuses and discounts 4,690,814 8,606,232 55 Operating expenses 85,392,603 76,631,015 111 Expenses form investments including expenses in subsidiaries and associates 9,036,275 37,213,496 24 Other insurance expenses 11,841,819 13,445,292 88 Other expense 5,909,255 3,450,282 171 Profit/loss before tax 32,344,091 31,582,395 102 Income tax expense 5,948,078 5,224,635 114 Net profit/loss for the accounting period 26,396,013 26,357,760 100

5.2 Financial position

Balance sheet total of the Triglav Group as at 30 June 2021 stood at EUR 4.4 billion, an increase of 6% relative to 31 December 2020.

Total equity as at 30 June 2021 amounted to EUR 871.9 As at the reporting date, total million and remained approximately at the same level as equity amounted to EUR 871.9 at 31 December 2020 (index 100). Total equity in total million. balance sheet liabilities fell by 1.2 percentage points to 19.8%. Equity attributable to the controlling company amounted to EUR 869.3 million and remained at a level approximately equal to the 2020 year-end, whereas non-controlling interests grew to EUR 2.6 million (index 102). The share capital of EUR 73.7 million remained unchanged and was divided into 22,735,148 ordinary shares. As a result of a decrease in the value of available-for-sale financial assets, fair value reserve declined by 8% to EUR 82.3 million. Share premium amounted to EUR 50.3 million and remained unchanged compared to the 2020 year-end (index 100).

Reserves from profit amounted to EUR 384.3 million and remained approximately at the same level as at the 2020 year-end (index 100). They comprise other reserves from profit of EUR 364.0 million, legal and statutory reserves in the amount of EUR 19.7 million and contingency reserves of EUR 640 thousand. Accumulated profit reached EUR 281.6 million, up by 3%. In addition to EUR 47.0 million (index 106) in net profit for the year, it includes EUR 234.6 million of net profit brought forward (index 102). Net profit brought forward increased by EUR 44.1 million due to the transfer of net profit for the previous year and decreased by EUR 38.6 million due to the payment of dividends and by EUR 205 thousand due to the transfer to reserves.

Subordinated liabilities amounted to EUR 49.4 million and were at a level approximately equal to the 2020 year-end (index 100).

Gross insurance technical provisions were 6% higher and amounted to EUR 3,211.3 million. Compared to the 2020 year-end, their share in total liabilities did not change and stood at 73.2%. Mathematical provisions rose by 2% to EUR 2,016.0 million. An increase was also seen in gross claims provisions (index 104), provisions for gross unearned premium (index 132) and other insurance technical provisions (index 106). Insurance technical provisions are discussed in greater detail in Section 4.7.

Other financial liabilities rose to EUR 60.7 million (compared to EUR 2.9 million in 2020) mainly due to an increase in financing liabilities from transactions after the reporting period at Zavarovalnica Triglav. Their share accounted for only 1.4% of total liabilities.

Operating liabilities grew by 23% over the 2020 year-end and amounted to EUR 86.5 million, thus representing 2.0% of balance sheet total. They increased mostly on the account of liabilities from coinsurance and reinsurance operations, which rose to EUR 61.3 million (index 125), and liabilities from direct insurance operations, which increased to EUR 22.7 million (index 135).

Lease liabilities amounted to EUR 9.4 million, a decrease of 7% relative to the 2020 year-end. Lease liabilities comprise long-term lease liabilities of EUR 9.1 million (index 95) and short-term lease liabilities of EUR 226 thousand (index 58).

Other provisions grew by 6% to EUR 21.8 million predominantly due to provisions for additional tax liabilities at Sarajevostan. Compared to 31 December 2020, deferred tax liabilities fell by 41% to EUR 8.6 million, primarily due to the lower fair value reserve for which deferred tax is calculated. Other liabilities were up by 1% to EUR 69.3 million.

Financial investments, which accounted for 65.4% of total assets, amounted to EUR 2,875.5 million and remained at a level approximately equal to the 2020 year-end (index 100). Available- for-sale financial assets, which totalled EUR 2,088.0 million, accounted for the bulk. Furthermore, EUR 541.2 million was accounted for by financial assets measured at fair value through profit or loss, EUR 154.8 million by held-to-maturity financial assets and EUR 91.6 million by deposits and loans. Unit-linked insurance assets amounted to EUR 571.3 million, up by 14%. The structure of financial assets is discussed in greater detail in Section 4.8.

The Triglav Group’s financial investments in associates rose by 14% to EUR 32.2 million mainly due to the capital increase of ZTSR in the amount of EUR 3.3 million. Investment property amounted to EUR 78.6 million and was at a level approximately equal to the 2020 year-end (index 100).

Receivables and deferred tax assets increased by 47% to EUR 300.7 million over the 2020 year- end and accounted for 6.8% of total assets, of which receivables from direct insurance operations accounted for the bulk at EUR 168.3 million (index 160), an increase of 3% relative to 30 June 2020. Receivables from coinsurance and reinsurance operations reached EUR 95.6 million (index 132), other receivables stood at EUR 32.5 million (index 139) and current tax receivables at EUR 3.4 million (index 173). Deferred tax assets amounted to EUR 1.0 million (index 130).

Insurance technical provisions transferred to reinsurance contracts totalled EUR 165.2 million, having increased by 31%. Assets from reinsurance contracts from claims provisions were 4% higher and totalled EUR 86.5 million, while assets from unearned premium rose by 83% to EUR 74.7 million.

Property, plant and equipment totalled EUR 110.7 million, a decrease of 2% relative to 31 December 2020. Intangible assets amounted to EUR 110.1 million, up by 9%, primarily due to the growth of long-term deferred acquisition costs.

Non-current assets held for sale of EUR 0.7 million declined by 23% primarily due to the sale of real property of Triglav, Upravljanje nepremičnin.

Right-of-use assets amounted to EUR 9.4 million, down by 4% relative to the 2020 year-end. They comprise the right to use land and buildings of EUR 7.3 million (index 90), the right to use vehicles of EUR 2.0 million (index 123) and the right to use other assets of EUR 89 thousand (index 98).

Cash and cash equivalents amounted to EUR 135.5 million (index 165), whilst other assets totalled EUR 8.9 million (index 141).

Individual items in the consolidated balance sheet of the Triglav Group as at 30 June 2021 30 June 2021 31 December 2020 Index Share 2021 Share 2020

ASSETS 4,398,760,087 4,139,441,072 106 100.0% 100.0% Intangible assets 110,121,723 100,975,475 109 2.5% 2.4% Property, plant and equipment 110,713,775 113,291,036 98 2.5% 2.7% Non-current assets held for sale 703,288 915,851 77 0.0% 0.0% Investment property 78,612,200 78,977,800 100 1.8% 1.9% Right-of-use assets 9,392,199 9,821,211 96 0.2% 0.2% Investments in associates 32,195,526 28,237,714 114 0.7% 0.7% Financial investments 2,875,544,952 2,887,380,559 100 65.4% 69.8% Unit-linked insurance assets 571,250,903 501,808,980 114 13.0% 12.1% Reinsurers' share of insurance technical provisions 165,153,580 125,873,637 131 3.8% 3.0% Receivables and deferred tax assets 300,728,726 203,962,440 147 6.8% 4.9% Other assets 8,891,277 6,296,705 141 0.2% 0.2% Cash and cash equivalents 135,451,938 81,899,664 165 3.1% 2.0% EQUITY AND LIABILITIES 4,398,760,087 4,139,441,072 106 100.0% 100.0% Equity 871,850,159 870,151,947 100 19.8% 21.0% Subordinated liabilities 49,444,335 49,423,693 100 1.1% 1.2% Insurance technical provisions 2,644,146,453 2,523,229,144 105 60.1% 61.0% Insurance technical provisions for unit-linked insurance contracts 577,168,197 509,984,710 113 13.1% 12.3% Other provisions 21,780,068 20,590,254 106 0.5% 0.5% Deferred tax liabilities 8,556,860 14,539,515 59 0.2% 0.4% Other financial liabilities 60,656,092 2,895,834 2.095 1.4% 0.1% Operating liabilities 86,500,891 70,313,038 123 2.0% 1.7% Lease liabilities 9,368,421 10,025,532 93 0.2% 0.2% Other liabilities 69,288,611 68,287,405 101 1.6% 1.6%

Individual items in the balance sheet of Zavarovalnica Triglav as at 30 June 2021 30 June 2021 31 December 2020 Index Share 2021 Share 2020

ASSETS 3,142,271,794 2,995,518,165 105 100.0% 100.0% Intangible assets 67,624,098 62,397,579 108 2.2% 2.1% Property, plant and equipment 66,054,420 67,775,451 97 2.1% 2.3% Investment property 44,101,845 44,451,276 99 1.4% 1.5% Right-of-use assets 3,643,745 3,587,916 102 0.1% 0.1% Investments in subsidiaries and associates 167,284,894 163,675,415 102 5.3% 5.5% Financial investments 1,940,666,820 1,983,588,373 98 61.8% 66.2% Unit-linked insurance assets 498,966,604 442,292,488 113 15.9% 14.8% Reinsurers' share of insurance technical provisions 130,844,445 105,903,438 124 4.2% 3.5% Receivables and deferred tax assets 158,116,124 95,800,206 165 5.0% 3.2% Other assets 4,829,963 3,741,799 129 0.2% 0.1% Cash and cash equivalents 60,138,835 22,304,222 270 1.9% 0.7% EQUITY AND LIABILITIES 3,142,271,794 2,995,518,165 105 100.0% 100.0% Equity 624,425,304 644,003,173 97 19.9% 21.5% Subordinated liabilities 49,444,335 49,423,693 100 1.6% 1.6% Insurance technical provisions 1,811,302,641 1,750,315,382 103 57.6% 58.4% Insurance technical provisions for unit-linked insurance contracts 503,258,556 448,726,097 112 16.0% 15.0% Other provisions 14,001,467 13,843,321 101 0.4% 0.5% Deferred tax liabilities 3,098,398 9,531,162 33 0.1% 0.3% Other financial liabilities 52,372,685 1,633,896 3.205 1.7% 0.1% Operating liabilities 38,186,816 33,977,772 112 1.2% 1.1% Lease liabilities 3,785,359 3,675,805 103 0.1% 0.1% Other liabilities 42,396,232 40,387,864 105 1.3% 1.3%

6. Risk management

6.1 Risk Management

The Triglav Group has maintained a good capital position within the target level of 200–250% in 2021. The Group's overall risk assessment increased slightly in the second quarter due to year- on-year dynamics of operations, growth in the volume of operations and developments in the debt and stock markets.

The higher risk assessment was primarily a result of the increase in market risks and additionally due to the increase in underwriting risks in line with the growth in the volume of non-life insurance business. The Company continued to pursue the investment policy adjusted to the obligations, which is reflected in the lower assessment of interest rate risk. Significant growth in stock markets was also observed in the reporting period, which on the one hand increased exposure to equity investments and, on the other, increased the risk of losses from these investments.

Credit risks decreased due to the improved average credit quality of banks with which the Group members collaborate.

6.2 Internal audit

In the first half of 2021, the Internal Audit Department complied with its annual work plan. It conducted internal audits of various areas in Zavarovalnica Triglav and audits in some subsidiaries. The findings were reported to both the management of the audited areas and the Management Board.

In addition, the Internal Audit Department monitored the implementation of recommendations made by internal and external auditors, provided advisory services and performed other internal audit tasks. The Internal Audit Department reported on its work to the Management Board, the Audit Committee and the Supervisory Board.

7. Employees of the Triglav Group

The Triglav Group had 5,322 employees as at 30 June 2021, up by six employees relative to 31 December 2020. The number of employees increased the most at Triglav, Zdravstvena zavarovalnica and Triglav Osiguranje, Sarajevo, and decreased the most at Triglav Osiguranje, Belgrade as a result of the decrease in the number of fixed-term employees due to the COVID- 19 pandemic.

Employees by Triglav Group market as at 30 June 2021

North Macedonia 5.4% Montenegro 7.2%

Croatia 10.4%

Slovenia 51.0% Bosnia and Herzegovina 10.9%

Serbia 15.1%

Employees by Triglav Group activity as at 30 June 2021

Other 10.5% Asset management 2.2%

Insurance 87.3%

ACCOUNTING REPO RT

Accounting Report

Statement of management's responsibility 54

1. Financial statements 55

2. Selected notes to the financial statements 61

2.1 Statement of compliance 61

2.2 Significant accounting policies and going concern assumptions 61

2.3 Seasonal operations 61

2.4 Segmental analysis of the Triglav Group operations 61

2.5 Segmental analysis of Zavarovalnica Triglav’s operations 70

2.6 Significant items of the statement of financial position 73

2.7 Changes in equity stakes in subsidiaries and business combinations 78

2.8 Related party transactions 80

2.9 Significant events after the reporting date 85

Statement of management's responsibility

The Management Board herewith confirms the financial statements for the period from 1 January 2021 to 30 June 2021 as well as the applied accounting policies and notes to the financial statements.

The Management Board is responsible for preparing the Interim Report so as to give a true and fair view of the assets and liabilities, the financial position and the profit or loss of the Triglav Group and Zavarovalnica Triglav, d.d. for the period from 1 January 2021 to 30 June 2021 in accordance with IAS 34 – Interim reporting.

The Management Board confirms that the appropriate accounting policies were consistently used and that the accounting estimates were prepared according to the principles of prudence and sound management. The Management Board further confirms that the financial statements and the notes thereto were prepared on a going concern basis for the Triglav Group and Zavarovalnica Triglav, d.d. and in line with the applicable legislation and International Financial Reporting Standards, as adopted by the EU.

The Management Board confirms that the Interim Management Report of the Triglav Group and Zavarovalnica Triglav, d.d. for the period from 1 January 2021 to 30 June 2021 includes a fair review of their business developments, results and financial positions, including a description of the major risks to which Zavarovalnica Triglav, d.d. as the parent company and its consolidated subsidiaries are exposed to as the Group.

The Management Board is also responsible for appropriate accounting practices, the adoption of appropriate measures for the safeguarding of assets, and for the prevention and detection of fraud and other irregularities or illegal acts.

Andrej Slapar Uroš Ivanc Tadej Čoroli President of the Management Member of the Management Member of the Management Board Board Board

Barbara Smolnikar David Benedek Marica Makoter Member of the Management Member of the Management Member of the Management Board Board Board

Ljubljana, 10 August 2021

1. Financial statements

in EUR STATEMENT OF FINANCIAL POSITION Triglav Group Zavarovalnica Triglav 30 June 2021 31 December 2020 30 June 2021 31 December 2020 ASSETS 4,398,760,087 4,139,441,072 3,142,271,794 2,995,518,165 Intangible assets 110,121,723 100,975,475 67,624,098 62,397,579 Property, plant and equipment 110,713,775 113,291,036 66,054,420 67,775,451 Non-current assets held for sale 703,288 915,851 0 0 Deferred tax assets 1,011,410 778,589 0 0 Investment property 78,612,200 78,977,800 44,101,845 44,451,276 Right of use assets 9,392,199 9,821,211 3,643,745 3,587,916 Investments in subsidiaries 0 0 132,400,966 132,337,466 Investments in associates 32,195,526 28,237,714 34,883,929 31,337,951 - accounted for using the equity method 32,195,526 28,237,714 0 0 - measured at fair value 0 0 34,883,929 31,337,951 Financial investments 2,875,544,952 2,887,380,559 1,940,666,820 1,983,588,373 - loans and deposits 91,570,322 97,971,079 35,108,494 36,951,085 - held to maturity 154,791,939 162,824,686 138,151,594 143,908,512 - available for sale 2,088,028,549 2,101,914,068 1,559,557,893 1,595,002,429 - recognised at fair value through profit and loss 541,154,142 524,670,726 207,848,839 207,726,347 Unit-linked insurance assets 571,250,903 501,808,980 498,966,604 442,292,488 Reinsurers’ share of technical provisions 165,153,580 125,873,637 130,844,445 105,903,438 Receivables 299,717,316 203,183,851 158,116,124 95,800,206 - receivables from direct insurance operations 168,261,669 105,484,939 108,272,535 67,632,214 - receivables from reinsurance and co-insurance operations 95,550,959 72,355,133 34,186,786 19,797,094 - current tax receivables 3,368,125 1,950,631 0 0 - other receivables 32,536,563 23,393,148 15,656,803 8,370,898 Other assets 8,891,277 6,296,705 4,829,963 3,741,799 Cash and cash equivalents 135,451,938 81,899,664 60,138,835 22,304,222

EQUITY AND LIABILITIES 4,398,760,087 4,139,441,072 3,142,271,794 2,995,518,165 Equity 871,850,159 870,151,947 624,425,304 644,003,173 Controlling interests 869,286,858 867,648,574 624,425,304 644,003,173 - share capital 73,701,392 73,701,392 73,701,392 73,701,392 - share premium 50,271,311 50,271,107 53,412,884 53,412,884 - reserves from profit 384,311,513 384,106,692 367,862,643 367,862,643 - treasury share reserves 364,680 364,680 0 0 - treasury shares -364,680 -364,680 0 0 - fair value reserve 82,304,422 89,293,484 52,077,948 59,402,079 - net profit brought forward 234,619,011 229,284,048 50,974,424 60,526,536 - net profit for the year 46,968,593 44,131,955 26,396,013 29,097,639 - currency translation differences -2,889,384 -3,140,104 0 0 Non-controlling interests 2,563,301 2,503,373 0 0 Subordinated liabilities 49,444,335 49,423,693 49,444,335 49,423,693 Insurance technical provisions 2,644,146,453 2,523,229,144 1,811,302,641 1,750,315,382 - unearned premiums 454,171,853 344,760,927 309,796,857 235,190,816 - mathematical provisions 1,438,857,843 1,457,023,963 1,017,217,108 1,041,557,084 - claims provisions 670,447,083 645,331,168 443,291,069 430,259,621 - other insurance technical provisions 80,669,674 76,113,086 40,997,607 43,307,861 Insurance technical provisions for unit-linked insurance contracts 577,168,197 509,984,710 503,258,556 448,726,097 Employee benefits 17,837,940 17,781,153 13,157,721 13,073,364 Other provisions 3,942,128 2,809,101 843,747 769,957 Deferred tax liabilities 8,556,860 14,539,515 3,098,398 9,531,162 Other financial liabilities 60,656,092 2,895,834 52,372,685 1,633,896 Operating liabilities 86,500,891 70,313,038 38,186,816 33,977,772 - liabilities from direct insurance operations 22,671,051 16,801,856 15,425,600 10,636,904 - liabilities from reinsurance and co-insurance operations 61,267,028 48,940,738 22,238,651 19,824,185 - current tax liabilities 2,562,812 4,570,444 522,565 3,516,683 Lease liabilities 9,368,421 10,025,532 3,785,359 3,675,805 Other liabilities 69,288,611 68,287,405 42,396,232 40,387,864

in EUR

INCOME STATEMENT Triglav Group Zavarovalnica Triglav H1 2021 H1 2020 H1 2021 H1 2020 NET PREMIUM INCOME 544,071,791 523,073,694 292,097,642 283,210,102 - gross written premium 731,098,727 673,390,302 437,903,125 399,857,776 - ceded written premium -122,453,232 -93,650,435 -101,769,544 -79,351,935 - change in unearned premium reserve -64,573,704 -56,666,173 -44,035,939 -37,295,739

INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 916,009 359,749 119,640 154,339 - profit on equity investments accounted for using the equity method 916,009 359,749 0 0 - other income from investments in subsidiaries and associates 0 0 119,640 154,339

INCOME FROM INVESTMENTS 87,332,426 47,834,635 65,505,453 32,508,079 - interest income calculated using the effective interest method 17,578,785 22,293,271 10,070,877 14,114,641 - gains on disposals 5,404,506 16,725,011 4,826,260 14,717,169 - other income from investments 64,349,135 8,816,353 50,608,316 3,676,269

OTHER INCOME FROM INSURANCE OPERATIONS 25,719,206 24,944,982 23,033,612 20,732,938 - fees and commission income 20,858,976 17,560,087 19,336,432 16,872,789 - other income from insurance operations 4,860,230 7,384,895 3,697,180 3,860,149

OTHER INCOME 22,359,984 19,267,365 4,058,938 3,686,177

NET CLAIMS INCURRED 351,332,873 338,251,747 186,416,641 187,831,876 - gross claims settled 347,590,380 330,803,253 192,910,498 194,166,468 - reinsurers’ share -20,585,376 -15,816,939 -18,710,199 -16,043,195 - changes in claims provisions 20,701,254 20,116,706 12,216,342 9,708,603 - equalisation scheme expenses for supplementary health insurance 3,626,615 3,148,727 0 0

CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) -2,391,105 25,425,664 -5,889,930 4,866,528 CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS 67,530,977 -20,198,745 55,073,717 -23,335,482 EXPENSES FOR BONUSES AND DISCOUNTS 13,346,843 9,537,868 4,690,814 8,606,232

OPERATING EXPENSES 131,593,734 117,682,546 85,392,603 76,631,015 - acquisition costs 91,950,966 80,419,621 62,388,353 56,161,298 - other operating costs 39,642,768 37,262,925 23,004,250 20,469,717

EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 73,256 174,747 2,938 7,002 - loss on investments accounted for using the equity method 73,256 174,747 0 0 - other expenses from financial assets and liabilities 0 0 2,938 7,002

EXPENSES FROM INVESTMENTS 15,564,174 53,184,756 9,033,337 37,206,495 - loss on impairment of investments 0 972,868 0 972,868 - loss on disposal of investments 2,866,581 4,294,708 2,755,661 3,362,817 - other expenses from investments 12,697,593 47,917,180 6,277,676 32,870,810

OTHER INSURANCE EXPENSES 25,420,974 31,436,622 11,841,819 13,445,292

OTHER EXPENSES 21,684,826 19,422,799 5,909,255 3,450,282 - expenses from financing 1,306,461 1,564,115 1,133,029 1,413,509 - other expenses 20,378,365 17,858,684 4,776,226 2,036,773

PROFIT BEFORE TAX 56,242,864 40,562,421 32,344,091 31,582,395 Income tax expense 9,267,734 7,064,192 5,948,078 5,224,635 NET PROFIT FOR THE PERIOD 46,975,130 33,498,229 26,396,013 26,357,760 Earning per share 2.07 1.47 - - Net profit/loss attributable to the controlling company 46,968,593 33,351,336 - - Net profit/loss attributable to the non-controlling interest holders 6,537 146,893 - -

in EUR Triglav Group Zavarovalnica Triglav STATEMENT OF OTHER COMPREHENSIVE INCOME H1 2021 H1 2020 H1 2021 H1 2020 Net profit for the period after tax 46,975,130 33,498,229 26,396,013 26,357,760 Other comprehensive income after tax -6,635,618 -10,721,670 -7,324,131 -1,592,415 Items which will not be transferred in P&L in future periods -28,045 0 -28,045 0 Actuarial gains/losses for pension plans -28,045 0 -28,045 0 Items which could be transferred into P&L in future periods -6,607,573 -10,721,670 -7,296,086 -1,592,415 Fair value gains/losses on available-for-sale financial assets -33,917,424 -10,485,160 -34,668,505 -1,237,423 – net gains/losses recognized directly in fair value reserve -24,311,874 -2,182,058 -25,490,841 5,900,677 – transfers from fair value reserve to income statement -9,605,550 -8,303,102 -9,177,664 -7,138,100 Liabilities from insurance contracts with DPF 21,192,283 -509,962 21,192,283 -509,961 Currency translation differences 250,485 -789,130 0 0 Tax on other comprehensive income 5,867,083 1,062,582 6,180,136 154,969 COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX 40,339,512 22,776,559 19,071,882 24,765,345 Controlling interest 40,246,502 22,718,202 - - Non-controlling interest 93,010 58,357 - -

in EUR

Reserves from profit Share Share Contingency Legal and Treasury Treasury Other Fair value Net Net Translation Total equity Equity TOTAL capital premium reserves statutory share shares reserves form reserve profit/loss profit/loss differences attributable attributable reserves reserves (deductible profit brought to the to non- Triglav Group item) forward controlling controling company interest holders As at 1 January 2021 73,701,392 50,271,107 640,340 20,266,352 364,680 -364,680 363,200,000 89,293,484 229,284,048 44,131,955 -3,140,104 867,648,574 2,503,373 870,151,947 Comprehensive income for the period from 1 0 0 0 0 0 0 0 -6,989,062 16,251 46,968,593 250,720 40,246,502 93,010 40,339,512 January 2021 to 30 June 2021 a) Net profit 0 0 0 0 0 0 0 0 0 46,968,593 0 46,968,593 6,537 46,975,130 b) Other comprehensive 0 0 0 0 0 0 0 -6,989,062 16,251 0 250,720 -6,722,091 86,473 -6,635,618 income Dividend payment 0 0 0 0 0 0 0 0 -38,608,422 0 0 -38,608,422 0 -38,608,422 Transfer to retained 0 0 0 0 0 0 0 0 44,131,955 -44,131,955 0 0 0 0 earnings Allocation of reserves 0 0 0 -579,902 0 0 784,723 0 -204,821 0 0 0 0 0 from profit Changes in consolidation 0 204 0 0 0 0 0 0 0 0 0 204 -33,082 -32,878 area As at 30 June 2021 73,701,392 50,271,311 640,340 19,686,450 364,680 -364,680 363,984,723 82,304,422 234,619,011 46,968,593 -2,889,384 869,286,858 2,563,301 871,850,159

As at 1 January 2020 73,701,392 50,276,637 640,340 19,793,935 364,680 -364,680 334,300,000 84,099,924 165,896,170 63,404,824 -2,587,098 789,526,123 2,425,665 791,951,788 Comprehensive income for the period from 1 0 0 0 0 0 0 0 -9,852,883 0 33,351,336 -780,251 22,718,202 58,357 22,776,559 January 2020 to 30 June 2020 a) Net profit 0 0 0 0 0 0 0 0 0 33,351,336 0 33,351,336 146,893 33,498,229 b) Other comprehensive 0 0 0 0 0 0 0 -9,852,883 0 0 -780,251 -10,633,134 -88,536 -10,721,670 income Transfer to retained 0 0 0 0 0 0 0 0 63,404,824 -63,404,824 0 0 0 0 earnings Changes in consolidation 0 204 0 0 0 0 0 0 0 0 0 204 -32,935 -32,731 area As at 30 June 2020 73,701,392 50,276,841 640,340 19,793,935 364,680 -364,680 334,300,000 74,247,041 229,300,995 33,351,336 -3,367,349 812,244,530 2,451,087 814,695,617

in EUR Reserves form profit Share capital Share Legal and Other Fair value Net Net TOTAL EQUITY premium statutory reserves from reserve profit/loss profit/loss Zavarovalnica Triglav reserves profit brought forward As at 1 January 2021 73,701,392 53,412,884 4,662,643 363,200,000 59,402,079 60,526,537 29,097,639 644,003,174 Comprehensive income for the period from 1 January 2021 to 30 0 0 0 0 -7,324,131 0 26,396,013 19,071,882 June 2021 a) Net profit 0 0 0 0 0 0 26,396,013 26,396,013 b) Other comprehensive income 0 0 0 0 -7,324,131 0 0 -7,324,131 Transfer to retained earnings 0 0 0 0 0 29,097,639 -29,097,639 0 Payment of dividends 0 0 0 0 0 -38,649,752 0 -38,649,752 As at 30 June 2021 73,701,392 53,412,884 4,662,643 363,200,000 52,077,948 50,974,424 26,396,013 624,425,304

As at 1 January 2020 73,701,392 53,412,884 4,662,643 334,300,000 53,859,881 9,929,059 50,614,416 580,480,275 Comprehensive income for the period from 1 January 2020 to 30 0 0 0 0 -1,592,415 0 26,357,760 24,765,345 June 2020 a) Net profit 0 0 0 0 0 0 26,357,760 26,357,760 b) Other comprehensive income 0 0 0 0 -1,592,415 0 0 -1,592,415 Transfer to retained earnings 0 0 0 0 0 50,614,416 -50,614,416 0 As at 30 June 2020 73,701,392 53,412,884 4,662,643 334,300,000 52,267,466 60,543,475 26,357,760 605,245,620

in EUR CASH FLOW STATEMENT Triglav Group Zavarovalnica Triglav H1 2021 H1 2020 H1 2021 H1 2020 A. OPERATING CASH FLOW Income statement items 154,420,926 133,670,180 79,533,947 69,108,896 Net written premium for the period 642,367,573 607,612,010 336,133,581 320,505,842 Investment income (excluding financial income) 11,324,115 13,480,056 4,639,550 4,969,891 Other operating income (excluding revaluation and provisions reductions) operating revenues and financial income from operating receivables 19,213,280 16,326,806 5,512,314 4,806,947 Net claims paid -334,942,074 -326,533,100 -174,200,299 -178,123,273 Bonuses and rebates paid -5,561,374 -5,328,246 -4,690,814 -4,456,148 Net operating expenses excluding depreciation charge and changes in the accrued acquisition expenses -137,355,766 -125,164,787 -68,459,915 -61,255,479 Investment expenses (excluding depreciation charge and financial expenses) -8,081,309 -10,236,672 -3,182,098 -3,895,782 Other operating expenses excluding depreciation charge (except for revaluations and without increasing provisions) -20,650,110 -26,711,909 -7,023,548 -5,461,792 Corporate income tax and other taxes excluded from operating expenses -11,893,409 -9,773,978 -9,194,824 -7,981,310

Changes in net current assets-operating balance sheet items -78,426,805 -83,532,892 -48,375,428 -61,129,150 Movements in receivables from direct insurance operations -63,865,571 -54,938,578 -40,785,975 -43,047,963 Movements in receivables from reinsurance operations -30,266,700 -33,437,237 -14,389,692 -7,503,153 Movements in other receivables from (re)insurance operations -11,683,665 -16,775,021 -666,717 -1,923,085 Movements in other receivables and assets -3,419,431 -3,051,447 -1,263,513 -531,263 Movements in deferred tax assets -1,125,146 -1,044,427 0 0 Movements in inventories 95,535 -41,384 -4,424 -50,408 Movements in debts from direct insurance operations 5,022,747 -112,291 4,788,696 -852,174 Movements in debts from reinsurance operations 17,254,783 17,521,743 2,414,466 2,080,487 Movements in operating debts -3,949,540 -787,335 -201,055 -291,538 Movements in other liabilities (excluding unearned premiums) 13,217,788 10,998,264 1,732,785 -9,010,053 Movements in deferred tax liabilities 292,395 -1,865,179 0 0

Net cash from/ (used in) operating activities 75,994,121 50,137,288 31,158,518 7,979,746 B. CASH FLOWS FROM INVESTING ACTIVITIES Cash inflows from investing activities 670,693,028 857,619,693 584,154,416 720,781,353 Cash inflows from interest from investing activities 22,391,667 25,447,484 14,083,450 17,532,127 Cash inflows from dividends received and profit sharing 687,511 1,161,024 284,366 324,365 Cash inflows from the disposal of intangible assets 0 0 0 0 Cash inflows from the disposal of property, plant and equipment 889,677 261,231 229,837 171,626 Cash inflows from the disposal of financial investments 646,724,173 830,749,954 569,556,763 702,753,235 - Cash inflows from the disposal of investments in subsidiaries and associates 0 0 0 0 - Other cash inflows from disposal of financial investments 646,724,173 830,749,954 569,556,763 702,753,235

Cash outflows from investing activities -652,530,636 -858,916,760 -538,279,967 -699,541,857 Cash outflows for the purchase of intangible assets -2,722,388 -4,553,545 -2,235,946 -3,299,111 Cash outflows for the purchase of property, plant and equipment -3,240,832 -3,184,013 -1,702,267 -1,507,185 Cash outflows for the purchase of financial investments -646,567,416 -851,179,202 -534,341,753 -694,735,561 - Cash outflows for the purchase of investments in subsidiaries and associates -3,332,883 -13,532,729 -3,363,500 -13,500,000 - Other cash outflows to acquire financial investments -643,234,533 -837,646,473 -530,978,253 -681,235,561

Net cash from/ (used in) investing activities 18,162,392 -1,297,067 45,874,450 21,239,496 C. CASH FLOWS FROM FINANCING ACTIVITIES Cash inflows from financing activities 0 0 0 0

Cash outflows from financing activities -40,624,312 -23,655,269 -39,198,355 -22,383,028 Cash outflows for paid interest -246,319 -1,468,409 -29,909 -1,259,532 Cash outflows for payments of long-term financial liabilities 0 -20,628,000 0 -20,628,000 Cash outflows for payments of short-term financial liabilities -1,728,241 -1,558,860 -518,694 -495,496 Cash outflows from dividends paid and profit sharing -38,649,752 0 -38,649,752 0

Net cash from/ (used in) financing activities -40,624,312 -23,655,269 -39,198,355 -22,383,028 D. Closing balance of cash and cash equivalents 135,451,938 100,989,051 60,138,835 32,948,326 E1. Net cash flow for the period 53,532,201 25,184,952 37,834,613 6,836,214 E2. Foreign exchange differences 20,073 -65,676 0 0 F. Opening balance of cash and cash equivalents 81,899,664 75,869,775 22,304,222 26,112,112

2. Selected notes to the financial statements

Statement of compliance

The Company's separate and consolidated financial statements have been prepared based on the requirements of domestic legislation in accordance with International Financial Reporting Standards as adopted by the European Union (hereinafter: IFRS). Subsidiaries in which the Company holds, directly or indirectly, more than one half of the voting rights are fully consolidated. The financial report for the period from 1 January to 30 June 2021 has been prepared in accordance with IAS 34 – Interim Financial Reporting.

In order to obtain correct information on the financial position and results of the entire Triglav Group, it is necessary to consider the separate financial statements of Zavarovalnica Triglav together with the consolidated financial statements.

The financial statements for the period from 1 January to 30 June 2021 have not been audited.

Significant accounting policies and going concern assumptions

The same accounting policies and calculation methods as for the preparation of the annual financial statements for 2020 were used for the preparation of the financial statements for the period from 1 January to 30 June 2021. With respect to the calculation of tax expenses, the adequacy of the effective tax rate of the preceding year was verified. As there were no significant deviations, the same rate was used in the reporting period.

Due to the changes in the economic and financial markets caused by the COVID-19 pandemic, the Group regularly monitors current and potential risks and reliably manages them. The risk profile at the Group level does not deviate significantly compared to the year-end. Adequate liquidity of the parent company is ensured, and the capital adequacy of the Group is assessed as solid. Based on regular monitoring of operations, the going concern assumption can be confirmed.

Seasonal operations Operations of Zavarovalnica Triglav are not of a seasonal character. In the first months of the year, gross written premium in non-life insurance was somewhat higher than in the remaining part of the year, as insurance to corporate clients is sold at the beginning of the year (as policies expire at the beginning of the financial year).

Segmental analysis of the Triglav Group operations

The management monitors the operations of Triglav Group based on the business segments (non-life insurance, life insurance, health insurance, non-insurance operations) and on the geographical segments (separately for Slovenia and other countries). The management uses various indicators to monitor the operations of individual segments, while the common measure of business performance for an individual operating segment is profit before taxes. The consolidated statement of financial position and the consolidated income statement by business segment and geographical area are given below.

in EUR

CONSOLIDATED STATEMENT OF FINANCIAL POSITION BY 30 June 2021 SEGMENT TOTAL NON- TOTAL Non-life Life Health Other CONSOLIDATED Eliminations CONSOLIDATED ASSETS 2,219,582,056 2,269,551,085 105,680,293 208,430,460 4,803,243,894 -404,483,807 4,398,760,087 Intangible assets 85,580,012 5,285,652 849,481 18,406,578 110,121,723 0 110,121,723 Property, plant and equipment 92,676,169 10,201,364 1,930,903 5,905,339 110,713,775 0 110,713,775 Non-current assets held for sale 0 0 0 703,288 703,288 0 703,288 Deferred tax assets 12,515,683 326,875 201,345 436,886 13,480,789 -12,469,379 1,011,410 Investment property 46,620,138 1,785,748 0 26,183,299 74,589,185 4,023,015 78,612,200 Right of use assets 9,031,824 640,116 620,977 2,418,272 12,711,189 -3,318,990 9,392,199 Investments in subsidiaries 126,866,503 13,438,187 0 71,477,093 211,781,783 -211,781,783 0 Investments in associates 31,758,340 437,186 0 0 32,195,526 0 32,195,526 Financial investments 1,157,016,217 1,590,411,688 91,532,010 42,040,798 2,881,000,713 -5,455,761 2,875,544,952 - loans and deposits 68,032,489 26,581,069 0 2,412,525 97,026,083 -5,455,761 91,570,322 - held to maturity 0 154,791,939 0 0 154,791,939 0 154,791,939 - available for sale 1,077,513,635 879,354,631 91,532,010 39,628,273 2,088,028,549 0 2,088,028,549 - recognised at fair value through profit and loss 11,470,093 529,684,049 0 0 541,154,142 0 541,154,142 Unit-linked insurance assets 0 571,250,903 0 0 571,250,903 0 571,250,903 Reinsurers’ share of technical provisions 269,372,908 3,977,954 1,921,028 0 275,271,890 -110,118,310 165,153,580 Receivables 342,320,274 4,668,224 6,301,680 11,672,043 364,962,221 -65,244,905 299,717,316 - receivables from direct insurance operations 161,648,950 1,402,095 5,353,393 58,402 168,462,840 -201,171 168,261,669 - receivables from reinsurance and co-insurance operations 155,132,755 170,124 302,879 0 155,605,758 -60,054,799 95,550,959 - current tax receivables 296,294 15,359 0 3,056,472 3,368,125 0 3,368,125 - other receivables 25,242,275 3,080,646 645,408 8,557,169 37,525,498 -4,988,935 32,536,563 Other assets 6,804,998 989,004 495,529 719,440 9,008,971 -117,694 8,891,277 Cash and cash equivalents 39,018,990 66,138,184 1,827,340 28,467,424 135,451,938 0 135,451,938

EQUITY AND LIABILITIES 2,219,582,056 2,269,551,085 105,680,293 208,430,460 4,803,243,894 -404,483,807 4,398,760,087 Equity 697,228,195 157,472,613 43,788,341 188,648,788 1,087,137,937 -215,287,777 871,850,159 Controlling interests 697,228,195 157,472,613 43,788,341 188,648,788 1,087,137,937 -217,851,078 869,286,858 - share capital 115,741,097 48,491,866 25,822,144 103,364,272 293,419,379 -219,717,987 73,701,392 - share premium 43,511,476 13,658,829 0 20,659,988 77,830,293 -27,558,982 50,271,311 - reserves from profit 333,487,943 47,223,257 1,231,991 1,598,175 383,541,366 770,147 384,311,513 - treasury share reserves 0 0 0 364,680 364,680 0 364,680 - treasury shares 0 0 0 0 0 -364,680 -364,680 - fair value reserve 55,510,465 8,710,565 1,603,611 17,714,870 83,539,511 -1,235,089 82,304,422 - net profit brought forward 115,190,969 36,681,649 11,403,821 41,863,755 205,140,194 29,478,818 234,619,011 - net profit for the year 35,776,298 3,525,173 3,726,774 3,143,890 46,172,135 796,458 46,968,593 - currency translation differences -1,990,053 -818,726 0 -60,842 -2,869,621 -19,763 -2,889,384 Non-controlling interests 0 0 0 0 0 2,563,301 2,563,301 Subordinated liabilities 49,444,335 0 1,500,000 0 50,944,335 -1,500,000 49,444,335 Insurance technical provisions 1,226,528,155 1,470,432,464 50,291,286 0 2,747,251,905 -103,105,452 2,644,146,453 - unearned premiums 489,844,472 475,993 4,043,116 0 494,363,581 -40,191,728 454,171,853 - mathematical provisions 0 1,430,150,307 0 0 1,430,150,307 8,707,536 1,438,857,843 - claims provisions 704,413,531 22,572,368 13,533,865 0 740,519,764 -70,072,681 670,447,083 - other insurance technical provisions 32,270,152 17,233,796 32,714,305 0 82,218,253 -1,548,579 80,669,674 Insurance technical provisions for unit-linked insurance contracts 0 577,168,196 0 0 577,168,196 0 577,168,197 Employee benefits 13,839,715 2,486,038 742,072 770,115 17,837,940 0 17,837,940 Other provisions 1,459,560 134,378 91,527 2,256,663 3,942,128 0 3,942,128 Deferred tax liabilities 13,116,736 2,856,500 0 5,064,777 21,038,013 -12,481,153 8,556,860 Other financial liabilities 23,403,703 39,372,131 0 1,097,549 63,873,383 -3,217,291 60,656,092 Operating liabilities 131,237,125 9,600,920 4,478,992 10,372 145,327,409 -58,826,518 86,500,891 - liabilities from direct insurance operations 10,652,265 9,076,795 3,333,889 0 23,062,949 -391,898 22,671,051 - liabilities from reinsurance and co-insurance operations 118,922,004 508,723 270,921 0 119,701,648 -58,434,620 61,267,028 - current tax liabilities 1,662,856 15,402 874,182 10,372 2,562,812 0 2,562,812 Lease liabilities 9,054,983 583,933 630,624 2,607,022 12,876,562 -3,508,141 9,368,421 Other liabilities 54,269,549 9,443,912 4,157,451 7,975,174 75,846,086 -6,557,475 69,288,611

in EUR

CONSOLIDATED STATEMENT OF FINANCIAL POSITION BY 31 December 2020 SEGMENT TOTAL NON- TOTAL Non-life Life Health Other CONSOLIDATED Eliminations CONSOLIDATED ASSETS 2,012,472,564 2,201,999,970 96,772,481 203,230,241 4,514,475,256 -375,034,184 4,139,441,072 Intangible assets 75,493,099 5,310,002 1,104,346 19,068,028 100,975,475 0 100,975,475 Property, plant and equipment 94,967,543 10,338,223 2,070,491 5,914,779 113,291,036 0 113,291,036 Non-current assets held for sale 0 0 0 915,851 915,851 0 915,851 Deferred tax assets 12,225,408 315,728 100,492 353,711 12,995,339 -12,216,750 778,589 Investment property 46,479,633 1,815,663 0 26,659,489 74,954,785 4,023,015 78,977,800 Right of use assets 9,196,761 742,514 736,587 2,868,556 13,544,418 -3,723,207 9,821,211 Investments in subsidiaries 126,370,012 13,438,187 0 73,079,881 212,888,080 -212,888,080 0 Investments in associates 27,787,564 450,150 0 0 28,237,714 0 28,237,714 Financial investments 1,139,058,291 1,630,345,795 84,738,085 40,370,531 2,894,512,702 -7,132,143 2,887,380,559 - loans and deposits 71,528,702 28,880,122 0 4,694,398 105,103,222 -7,132,143 97,971,079 - held to maturity 0 162,824,686 0 0 162,824,686 0 162,824,686 - available for sale 1,061,065,742 920,434,108 84,738,085 35,676,133 2,101,914,068 0 2,101,914,068 - recognised at fair value through profit and loss 6,463,847 518,206,879 0 0 524,670,726 0 524,670,726 Unit-linked insurance assets 0 501,808,980 0 0 501,808,980 0 501,808,980 Reinsurers’ share of technical provisions 205,023,278 2,120,725 1,930,507 0 209,074,510 -83,200,873 125,873,637 Receivables 244,061,313 2,853,381 5,773,521 10,329,503 263,017,718 -59,833,867 203,183,851 - receivables from direct insurance operations 99,328,743 857,266 5,415,317 46,036 105,647,362 -162,423 105,484,939 - receivables from reinsurance and co-insurance operations 124,912,987 125,891 288,594 0 125,327,472 -52,972,339 72,355,133 - current tax receivables 260,744 16,522 0 1,673,365 1,950,631 0 1,950,631 - other receivables 19,558,839 1,853,702 69,610 8,610,102 30,092,253 -6,699,105 23,393,148 Other assets 5,163,290 427,439 110,588 657,667 6,358,984 -62,279 6,296,705 Cash and cash equivalents 26,646,372 32,033,183 207,864 23,012,245 81,899,664 0 81,899,664

EQUITY AND LIABILITIES 2,012,472,564 2,201,999,970 96,772,481 203,230,241 4,514,475,256 -375,034,184 4,139,441,072 Equity 692,506,717 170,820,488 40,491,519 182,757,721 1,086,576,445 -216,424,498 870,151,947 Controlling interests 692,506,717 170,820,488 40,491,519 182,757,721 1,086,576,445 -218,927,871 867,648,574 - share capital 115,741,097 48,491,866 25,822,144 103,744,632 293,799,739 -220,098,347 73,701,392 - share premium 43,511,478 13,658,827 0 20,596,489 77,766,794 -27,495,687 50,271,107 - reserves from profit 333,236,478 47,223,257 1,231,991 1,692,535 383,384,261 722,431 384,106,692 - treasury share reserves 0 0 0 364,680 364,680 0 364,680 - treasury shares 0 0 0 0 0 -364,680 -364,680 - fair value reserve 58,511,213 15,245,473 2,033,564 14,655,399 90,445,649 -1,152,165 89,293,484 - net profit brought forward 107,987,054 40,763,981 7,030,922 39,589,850 195,371,807 33,912,241 229,284,048 - net profit for the year 35,549,723 6,453,044 4,372,898 2,179,544 48,555,209 -4,423,254 44,131,955 - currency translation differences -2,030,326 -1,015,960 0 -65,408 -3,111,694 -28,410 -3,140,104 Non-controlling interests 0 0 0 0 0 2,503,373 2,503,373 Subordinated liabilities 49,423,693 0 1,500,000 0 50,923,693 -1,500,000 49,423,693 Insurance technical provisions 1,063,657,574 1,490,492,569 43,649,539 0 2,597,799,682 -74,570,538 2,523,229,144 - unearned premiums 357,552,557 457,883 3,515,846 0 361,526,286 -16,765,359 344,760,927 - mathematical provisions 0 1,448,316,427 0 0 1,448,316,427 8,707,536 1,457,023,963 - claims provisions 674,353,544 21,380,025 14,654,188 0 710,387,757 -65,056,589 645,331,168 - other insurance technical provisions 31,751,473 20,338,234 25,479,505 0 77,569,212 -1,456,126 76,113,086 Insurance technical provisions for unit-linked insurance contracts 0 509,984,710 0 0 509,984,710 0 509,984,710 Employee benefits 13,719,361 2,523,496 748,274 790,022 17,781,153 0 17,781,153 Other provisions 1,337,516 128,168 170,071 1,173,346 2,809,101 0 2,809,101 Deferred tax liabilities 13,716,085 8,795,206 0 4,256,653 26,767,944 -12,228,429 14,539,515 Other financial liabilities 2,646,272 62,652 99,125 1,612,573 4,420,622 -1,524,788 2,895,834 Operating liabilities 110,512,564 8,970,466 4,240,077 148,714 123,871,821 -53,558,783 70,313,038 - liabilities from direct insurance operations 5,370,819 8,352,551 3,602,278 0 17,325,648 -523,792 16,801,856 - liabilities from reinsurance and co-insurance operations 101,187,933 547,228 240,568 0 101,975,729 -53,034,991 48,940,738 - current tax liabilities 3,953,812 70,687 397,231 148,714 4,570,444 0 4,570,444 Lease liabilities 9,425,284 684,384 745,771 3,024,607 13,880,046 -3,854,514 10,025,532 Other liabilities 55,527,498 9,537,831 5,128,105 9,466,605 79,660,039 -11,372,634 68,287,405

in EUR

STATEMENT OF FINANCIAL POSITION BY GEOGRAPHICAL AREA 30 June 2021 TOTAL NON- TOTAL Slovenia Other CONSOLIDATED Eliminations CONSOLIDATED ASSETS 4,266,095,133 537,148,761 4,803,243,894 -404,483,807 4,398,760,087 Intangible assets 88,258,267 21,863,456 110,121,723 0 110,121,723 Property, plant and equipment 71,319,536 39,394,239 110,713,775 0 110,713,775 Non-current assets held for sale 653,613 49,675 703,288 0 703,288 Deferred tax assets 13,093,834 386,955 13,480,789 -12,469,379 1,011,410 Investment property 68,990,037 5,599,148 74,589,185 4,023,015 78,612,200 Right of use assets 5,667,903 7,043,286 12,711,189 -3,318,990 9,392,199 Investments in subsidiaries 205,650,150 6,131,633 211,781,783 -211,781,783 0 Investments in associates 32,195,526 0 32,195,526 0 32,195,526 Financial investments 2,625,123,041 255,877,672 2,881,000,713 -5,455,761 2,875,544,952 - loans and deposits 51,435,514 45,590,569 97,026,083 -5,455,761 91,570,322 - held to maturity 146,438,185 8,353,754 154,791,939 0 154,791,939 - available for sale 1,898,944,597 189,083,952 2,088,028,549 0 2,088,028,549 - recognised at fair value through profit and loss 528,304,745 12,849,397 541,154,142 0 541,154,142 Unit-linked insurance assets 545,977,865 25,273,038 571,250,903 0 571,250,903 Reinsurers’ share of technical provisions 208,858,112 66,413,778 275,271,890 -110,118,310 165,153,580 Receivables 288,769,519 76,192,702 364,962,221 -65,244,905 299,717,316 - receivables from direct insurance operations 113,626,174 54,836,666 168,462,840 -201,171 168,261,669 - receivables from reinsurance and co-insurance operations 145,662,037 9,943,721 155,605,758 -60,054,799 95,550,959 - current tax receivables 3,014,808 353,317 3,368,125 0 3,368,125 - other receivables 26,466,500 11,058,998 37,525,498 -4,988,935 32,536,563 Other assets 5,881,996 3,126,975 9,008,971 -117,694 8,891,277 Cash and cash equivalents 105,655,734 29,796,204 135,451,938 0 135,451,938

EQUITY AND LIABILITIES 4,266,095,133 537,148,761 4,803,243,894 -404,483,807 4,398,760,087 Equity 958,087,688 129,050,248 1,087,137,936 -215,287,777 871,850,159 Controlling interests 958,087,688 129,050,248 1,087,137,936 -217,851,078 869,286,858 - share capital 192,452,158 100,967,221 293,419,379 -219,717,987 73,701,392 - share premium 75,810,498 2,019,795 77,830,293 -27,558,982 50,271,311 - reserves from profit 372,764,877 10,776,489 383,541,366 770,147 384,311,513 - treasury share reserves 364,680 0 364,680 0 364,680 - treasury shares 0 0 0 -364,680 -364,680 - fair value reserve 74,781,265 8,758,246 83,539,511 -1,235,089 82,304,422 - net profit brought forward 200,594,940 4,545,253 205,140,193 29,478,818 234,619,011 - net profit for the year 41,319,270 4,852,865 46,172,135 796,458 46,968,593 - currency translation differences 0 -2,869,621 -2,869,621 -19,763 -2,889,384 Non-controlling interests 0 0 0 2,563,301 2,563,301 Subordinated liabilities 50,944,335 0 50,944,335 -1,500,000 49,444,335 Insurance technical provisions 2,433,981,985 313,269,920 2,747,251,905 -103,105,452 2,644,146,453 - unearned premiums 381,565,386 112,798,195 494,363,581 -40,191,728 454,171,853 - mathematical provisions 1,348,268,534 81,881,773 1,430,150,307 8,707,536 1,438,857,843 - claims provisions 625,719,011 114,800,753 740,519,764 -70,072,681 670,447,083 - other insurance technical provisions 78,429,054 3,789,199 82,218,253 -1,548,579 80,669,674 Insurance technical provisions for unit-linked insurance contracts 552,086,621 25,081,576 577,168,197 0 577,168,197 Employee benefits 14,821,480 3,016,460 17,837,940 0 17,837,940 Other provisions 1,771,486 2,170,642 3,942,128 0 3,942,128 Deferred tax liabilities 19,395,532 1,642,481 21,038,013 -12,481,153 8,556,860 Other financial liabilities 60,618,034 3,255,349 63,873,383 -3,217,291 60,656,092 Operating liabilities 109,783,201 35,544,208 145,327,409 -58,826,518 86,500,891 - liabilities from direct insurance operations 19,599,944 3,463,005 23,062,949 -391,898 22,671,051 - liabilities from reinsurance and co-insurance operations 87,658,928 32,042,720 119,701,648 -58,434,620 61,267,028 - current tax liabilities 2,524,329 38,483 2,562,812 0 2,562,812 Lease liabilities 5,873,645 7,002,917 12,876,562 -3,508,141 9,368,421 Other liabilities 58,731,126 17,114,960 75,846,086 -6,557,475 69,288,611

in EUR

STATEMENT OF FINANCIAL POSITION BY GEOGRAPHICAL AREA 31 December 2020 TOTAL NON- TOTAL Slovenia Other CONSOLIDATED Eliminations CONSOLIDATED ASSETS 4,032,148,922 482,326,334 4,514,475,256 -375,034,184 4,139,441,072 Intangible assets 84,017,812 16,957,663 100,975,475 0 100,975,475 Property, plant and equipment 73,182,453 40,108,583 113,291,036 0 113,291,036 Non-current assets held for sale 768,967 146,884 915,851 0 915,851 Deferred tax assets 12,656,083 339,256 12,995,339 -12,216,750 778,589 Investment property 69,240,958 5,713,827 74,954,785 4,023,015 78,977,800 Right of use assets 6,034,215 7,510,203 13,544,418 -3,723,207 9,821,211 Investments in subsidiaries 207,189,438 5,698,642 212,888,080 -212,888,080 0 Investments in associates 28,237,714 0 28,237,714 0 28,237,714 Financial investments 2,643,372,240 251,140,462 2,894,512,702 -7,132,143 2,887,380,559 - loans and deposits 57,670,422 47,432,800 105,103,222 -7,132,143 97,971,079 - held to maturity 154,495,490 8,329,196 162,824,686 0 162,824,686 - available for sale 1,914,114,795 187,799,273 2,101,914,068 0 2,101,914,068 - recognised at fair value through profit and loss 517,091,533 7,579,193 524,670,726 0 524,670,726 Unit-linked insurance assets 479,168,738 22,640,242 501,808,980 0 501,808,980 Reinsurers’ share of technical provisions 165,288,509 43,786,001 209,074,510 -83,200,873 125,873,637 Receivables 203,568,387 59,449,331 263,017,718 -59,833,867 203,183,851 - receivables from direct insurance operations 73,047,776 32,599,586 105,647,362 -162,423 105,484,939 - receivables from reinsurance and co-insurance operations 109,694,158 15,633,314 125,327,472 -52,972,339 72,355,133 - current tax receivables 1,824,200 126,431 1,950,631 0 1,950,631 - other receivables 19,002,253 11,090,000 30,092,253 -6,699,105 23,393,148 Other assets 4,263,758 2,095,226 6,358,984 -62,279 6,296,705 Cash and cash equivalents 55,159,650 26,740,014 81,899,664 0 81,899,664

EQUITY AND LIABILITIES 4,032,148,922 482,326,334 4,514,475,256 -375,034,184 4,139,441,072 Equity 961,766,208 124,810,237 1,086,576,445 -216,424,498 870,151,947 Controlling interests 961,766,208 124,810,237 1,086,576,445 -218,927,871 867,648,574 - share capital 192,452,158 101,347,581 293,799,739 -220,098,347 73,701,392 - share premium 75,746,998 2,019,796 77,766,794 -27,495,687 50,271,107 - reserves from profit 372,764,877 10,619,384 383,384,261 722,431 384,106,692 - treasury share reserves 364,680 0 364,680 0 364,680 - treasury shares 0 0 0 -364,680 -364,680 - fair value reserve 81,192,803 9,252,846 90,445,649 -1,152,165 89,293,484 - net profit brought forward 196,182,765 -810,958 195,371,807 33,912,241 229,284,048 - net profit for the year 43,061,927 5,493,282 48,555,209 -4,423,254 44,131,955 - currency translation differences 0 -3,111,694 -3,111,694 -28,410 -3,140,104 Non-controlling interests 0 0 0 2,503,373 2,503,373 Subordinated liabilities 50,923,693 0 50,923,693 -1,500,000 49,423,693 Insurance technical provisions 2,321,584,385 276,215,297 2,597,799,682 -74,570,538 2,523,229,144 - unearned premiums 274,057,915 87,468,371 361,526,286 -16,765,359 344,760,927 - mathematical provisions 1,370,622,906 77,693,521 1,448,316,427 8,707,536 1,457,023,963 - claims provisions 603,087,599 107,300,158 710,387,757 -65,056,589 645,331,168 - other insurance technical provisions 73,815,965 3,753,247 77,569,212 -1,456,126 76,113,086 Insurance technical provisions for unit-linked insurance contracts 487,386,393 22,598,317 509,984,710 0 509,984,710 Employee benefits 14,754,947 3,026,206 17,781,153 0 17,781,153 Other provisions 1,823,032 986,069 2,809,101 0 2,809,101 Deferred tax liabilities 25,077,905 1,690,039 26,767,944 -12,228,429 14,539,515 Other financial liabilities 2,467,346 1,953,276 4,420,622 -1,524,788 2,895,834 Operating liabilities 100,356,539 23,515,282 123,871,821 -53,558,783 70,313,038 - liabilities from direct insurance operations 14,510,500 2,815,148 17,325,648 -523,792 16,801,856 - liabilities from reinsurance and co-insurance operations 81,808,051 20,167,678 101,975,729 -53,034,991 48,940,738 - current tax liabilities 4,037,988 532,456 4,570,444 0 4,570,444 Lease liabilities 6,177,790 7,702,256 13,880,046 -3,854,514 10,025,532 Other liabilities 59,830,684 19,829,355 79,660,039 -11,372,634 68,287,405

in EUR

CONSOLIDATED INCOME STATEMENT BY SEGMENT H1 2021 Non-life Life Health Other TOTAL NET PREMIUM INCOME 322,672,281 123,131,277 98,268,233 0 544,071,791 - gross written premium 506,554,952 125,742,471 98,801,304 0 731,098,727 - ceded written premium -119,860,277 -2,592,955 0 0 -122,453,232 - change in unearned premium reserve -64,022,394 -18,239 -533,071 0 -64,573,704

INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 731,068 0 0 184,941 916,009 - profit on equity investments accounted for using the equity method 731,068 0 0 184,941 916,009 - other income from investments in subsidiaries and associates 0 0 0 0 0

INCOME FROM INVESTMENTS 8,112,098 78,905,029 290,373 24,926 87,332,426 - interest income calculated using the effective interest method 5,370,176 11,896,283 289,304 23,022 17,578,785 - gains on disposals 1,270,440 4,133,934 0 132 5,404,506 - other income from investments 1,471,482 62,874,812 1,069 1,772 64,349,135

OTHER INCOME FROM INSURANCE OPERATIONS 24,816,362 870,821 32,023 0 25,719,206 - fees and commission income 20,001,995 856,981 0 0 20,858,976 - other income from insurance operations 4,814,367 13,840 32,023 0 4,860,230

OTHER INCOME 3,229,741 56,081 31,373 19,042,789 22,359,984

NET CLAIMS INCURRED 173,867,785 98,431,360 79,033,728 0 351,332,873 - gross claims settled 172,838,847 98,221,968 76,529,565 0 347,590,380 - reinsurers’ share -19,467,050 -1,117,667 -659 0 -20,585,376 - changes in claims provisions 20,495,988 1,327,059 -1,121,793 0 20,701,254 - equalisation scheme expenses for supplementary health insurance 0 0 3,626,615 0 3,626,615

CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) 783,924 -2,296,338 -878,691 0 -2,391,105 CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS 0 67,530,977 0 0 67,530,977 EXPENSES FOR BONUSES AND DISCOUNTS 5,227,465 5,888 8,113,490 0 13,346,843

OPERATING EXPENSES 103,736,093 20,985,632 6,872,009 0 131,593,734 - acquisition costs 77,302,446 13,406,251 1,242,269 0 91,950,966 - other operating costs 26,433,647 7,579,381 5,629,740 0 39,642,768

EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 60,292 12,964 0 0 73,256 - loss on investments accounted for using the equity method 60,292 12,964 0 0 73,256 - other expenses from financial assets and liabilities 0 0 0 0 0

EXPENSES FROM INVESTMENTS 3,162,662 12,354,236 37,478 9,798 15,564,174 - loss on impairment of investments 0 0 0 0 0 - loss on disposal of investments 629,300 2,237,281 0 0 2,866,581 - other expenses from investments 2,533,362 10,116,955 37,478 9,798 12,697,593

OTHER INSURANCE EXPENSES 24,819,102 354,301 247,571 0 25,420,974

OTHER EXPENSES 5,353,963 556,694 5,074 15,769,095 21,684,826 - expenses from financing 1,172,633 22,611 0 111,217 1,306,461 - other expenses 4,181,330 534,083 5,074 15,657,878 20,378,365

PROFIT BEFORE TAX 42,550,264 5,027,494 5,191,343 3,473,763 56,242,864 Income tax expense 6,855,502 601,545 874,182 936,505 9,267,734 NET PROFIT FOR THE PERIOD 35,694,762 4,425,949 4,317,161 2,537,258 46,975,130 Net profit/loss attributable to the controlling company 35,723,317 4,425,874 4,317,161 2,502,241 46,968,593 Net profit/loss attributable to the non-controlling interest holders -28,555 75 0 35,017 6,537

in EUR

CONSOLIDATED INCOME STATEMENT BY SEGMENT H1 2020 Non-life Life Health Other TOTAL NET PREMIUM INCOME 311,532,094 113,995,363 97,546,237 0 523,073,694 - gross written premium 459,704,134 115,635,569 98,050,599 0 673,390,302 - ceded written premium -92,055,506 -1,594,929 0 0 -93,650,435 - change in unearned premium reserve -56,116,534 -45,277 -504,362 0 -56,666,173

INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 329,871 0 0 29,878 359,749 - profit on equity investments accounted for using the equity method 329,871 0 0 29,878 359,749 - other income from investments in subsidiaries and associates 0 0 0 0 0

INCOME FROM INVESTMENTS 14,106,731 33,346,357 345,027 36,520 47,834,635 - interest income calculated using the effective interest method 7,198,336 14,787,787 307,010 138 22,293,271 - gains on disposals 5,819,371 10,867,623 38,017 0 16,725,011 - other income from investments 1,089,024 7,690,947 0 36,382 8,816,353

OTHER INCOME FROM INSURANCE OPERATIONS 24,382,433 535,728 26,821 0 24,944,982 - fees and commission income 17,054,523 505,564 0 0 17,560,087 - other income from insurance operations 7,327,910 30,164 26,821 0 7,384,895

OTHER INCOME 3,272,810 30,081 74,266 15,890,208 19,267,365

NET CLAIMS INCURRED 177,533,022 90,242,663 70,476,062 0 338,251,747 - gross claims settled 175,770,292 89,274,757 65,758,204 0 330,803,253 - reinsurers’ share -15,500,684 -316,514 259 0 -15,816,939 - changes in claims provisions 17,263,414 1,284,420 1,568,872 0 20,116,706 - equalisation scheme expenses for supplementary health insurance 0 0 3,148,727 0 3,148,727

CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) 132,229 10,564,271 14,729,164 0 25,425,664 CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS 0 -20,198,745 0 0 -20,198,745 EXPENSES FOR BONUSES AND DISCOUNTS 9,533,841 4,027 0 0 9,537,868

OPERATING EXPENSES 92,762,268 17,814,577 7,105,701 0 117,682,546 - acquisition costs 67,683,471 10,727,362 2,008,788 0 80,419,621 - other operating costs 25,078,797 7,087,215 5,096,913 0 37,262,925

EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 129,633 45,114 0 0 174,747 - loss on investments accounted for using the equity method 129,633 45,114 0 0 174,747 - other expenses from financial assets and liabilities 0 0 0 0 0

EXPENSES FROM INVESTMENTS 5,336,333 47,812,691 31,317 4,415 53,184,756 - loss on impairment of investments 902,644 70,224 0 0 972,868 - loss on disposal of investments 812,940 3,481,768 0 0 4,294,708 - other expenses from investments 3,620,749 44,260,699 31,317 4,415 47,917,180

OTHER INSURANCE EXPENSES 29,806,432 1,130,325 499,865 0 31,436,622

OTHER EXPENSES 3,890,630 189,802 27,553 15,314,814 19,422,799 - expenses from financing 1,335,129 138,633 0 90,353 1,564,115 - other expenses 2,555,501 51,169 27,553 15,224,461 17,858,684

PROFIT BEFORE TAX 34,499,551 302,804 5,122,689 637,377 40,562,421 Income tax expense 5,557,283 144,257 807,685 554,967 7,064,192 NET PROFIT FOR THE PERIOD 28,942,268 158,547 4,315,004 82,410 33,498,229 Net profit/loss attributable to the controlling company 28,791,806 152,887 4,315,004 91,639 33,351,336 Net profit/loss attributable to the non-controlling interest holders 150,462 5,660 0 -9,229 146,893

in EUR

CONSOLIDATED INCOME STATEMENT BY GEOGRAPHICAL AREA H1 2021 Slovenia Other TOTAL NET PREMIUM INCOME 436,994,177 107,077,614 544,071,791 - gross written premium 587,686,239 143,412,488 731,098,727 - ceded written premium -99,260,759 -23,192,473 -122,453,232 - change in unearned premium reserve -51,431,303 -13,142,401 -64,573,704

INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 916,009 0 916,009 - profit on equity investments accounted for using the equity method 916,009 0 916,009 - other income from investments in subsidiaries and associates 0 0 0

INCOME FROM INVESTMENTS 81,653,665 5,678,761 87,332,426 - interest income calculated using the effective interest method 14,426,920 3,151,865 17,578,785 - gains on disposals 5,336,607 67,899 5,404,506 - other income from investments 61,890,138 2,458,997 64,349,135

OTHER INCOME FROM INSURANCE OPERATIONS 21,251,228 4,467,978 25,719,206 - fees and commission income 17,731,978 3,126,998 20,858,976 - other income from insurance operations 3,519,250 1,340,980 4,860,230

OTHER INCOME 18,492,450 3,867,534 22,359,984

NET CLAIMS INCURRED 293,653,982 57,678,891 351,332,873 - gross claims settled 293,302,566 54,287,814 347,590,380 - reinsurers’ share -17,101,291 -3,484,085 -20,585,376 - changes in claims provisions 13,826,092 6,875,162 20,701,254 - equalisation scheme expenses for supplementary health insurance 3,626,615 0 3,626,615

CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) -4,783,018 2,391,913 -2,391,105 CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS 65,241,486 2,289,491 67,530,977 EXPENSES FOR BONUSES AND DISCOUNTS 12,804,288 542,555 13,346,843

OPERATING EXPENSES 92,437,632 39,156,102 131,593,734 - acquisition costs 62,259,673 29,691,293 91,950,966 - other operating costs 30,177,959 9,464,809 39,642,768

EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 73,256 0 73,256 - loss on investments accounted for using the equity method 73,256 0 73,256 - other expenses from financial assets and liabilities 0 0 0

EXPENSES FROM INVESTMENTS 14,816,650 747,524 15,564,174 - loss on impairment of investments 0 0 0 - loss on disposal of investments 2,866,581 0 2,866,581 - other expenses from investments 11,950,069 747,524 12,697,593

OTHER INSURANCE EXPENSES 21,836,728 3,584,246 25,420,974

OTHER EXPENSES 16,899,949 4,784,877 21,684,826 - expenses from financing 1,150,582 155,879 1,306,461 - other expenses 15,749,367 4,628,998 20,378,365

PROFIT BEFORE TAX 46,326,576 9,916,288 56,242,864 Income tax expense 9,145,503 122,231 9,267,734 NET PROFIT FOR THE PERIOD 37,181,073 9,794,057 46,975,130 Net profit/loss attributable to the controlling company 37,181,073 9,787,520 46,968,593 Net profit/loss attributable to the non-controlling interest holders 0 6,537 6,537

in EUR

CONSOLIDATED INCOME STATEMENT BY GEOGRAPHICAL AREA H1 2020 Slovenia Other TOTAL NET PREMIUM INCOME 426,436,544 96,637,150 523,073,694 - gross written premium 550,047,356 123,342,946 673,390,302 - ceded written premium -75,326,621 -18,323,814 -93,650,435 - change in unearned premium reserve -48,284,191 -8,381,982 -56,666,173

INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 359,749 0 359,749 - profit on equity investments accounted for using the equity method 359,749 0 359,749 - other income from investments in subsidiaries and associates 0 0 0

INCOME FROM INVESTMENTS 42,860,922 4,973,713 47,834,635 - interest income calculated using the effective interest method 19,040,168 3,253,103 22,293,271 - gains on disposals 16,543,817 181,194 16,725,011 - other income from investments 7,276,937 1,539,416 8,816,353

OTHER INCOME FROM INSURANCE OPERATIONS 20,274,380 4,670,602 24,944,982 - fees and commission income 14,432,604 3,127,483 17,560,087 - other income from insurance operations 5,841,776 1,543,119 7,384,895

OTHER INCOME 15,799,911 3,467,454 19,267,365

NET CLAIMS INCURRED 281,912,238 56,339,509 338,251,747 - gross claims settled 284,843,387 45,959,866 330,803,253 - reinsurers’ share -12,750,654 -3,066,285 -15,816,939 - changes in claims provisions 6,670,778 13,445,928 20,116,706 - equalisation scheme expenses for supplementary health insurance 3,148,727 0 3,148,727

CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) 21,338,907 4,086,757 25,425,664 CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS -19,155,177 -1,043,568 -20,198,745 EXPENSES FOR BONUSES AND DISCOUNTS 8,610,004 927,864 9,537,868

OPERATING EXPENSES 83,508,897 34,173,649 117,682,546 - acquisition costs 56,604,165 23,815,456 80,419,621 - other operating costs 26,904,732 10,358,193 37,262,925

EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 174,747 0 174,747 - loss on investments accounted for using the equity method 174,747 0 174,747 - other expenses from financial assets and liabilities 0 0 0

EXPENSES FROM INVESTMENTS 50,978,575 2,206,181 53,184,756 - loss on impairment of investments 972,868 0 972,868 - loss on disposal of investments 4,275,721 18,987 4,294,708 - other expenses from investments 45,729,986 2,187,194 47,917,180

OTHER INSURANCE EXPENSES 27,219,720 4,216,902 31,436,622

OTHER EXPENSES 14,527,407 4,895,392 19,422,799 - expenses from financing 1,372,029 192,086 1,564,115 - other expenses 13,155,378 4,703,306 17,858,684

PROFIT BEFORE TAX 36,616,188 3,946,233 40,562,421 Income tax expense 6,847,192 217,000 7,064,192 NET PROFIT FOR THE PERIOD 29,768,996 3,729,233 33,498,229 Net profit/loss attributable to the controlling company 29,768,996 3,582,340 33,351,336 Net profit/loss attributable to the non-controlling interest holders 0 146,893 146,893

Segmental analysis of Zavarovalnica Triglav’s operations As Zavarovalnica Triglav operates mainly in the territory of the Republic of Slovenia, the management does not review a geographical analysis of operations. The management monitors the operations of Zavarovalnica Triglav according to its business segments, i. e. life and non-life insurance. The management uses various indicators to monitor the operations of individual segments, while the common measure of business performance for an individual operating segment is profit before taxes. The statement of financial position and the income statement by business segment are given below.

in EUR STATEMENT OF FINANCIAL POSITION 30 June 2021 31 December 2020 Non-life Life TOTAL Non-life Life TOTAL ASSETS 1,455,856,804 1,702,907,975 3,158,764,779 1,349,958,827 1,663,255,332 3,013,214,159 Intangible assets 62,484,353 5,139,745 67,624,098 57,234,354 5,163,225 62,397,579 Property, plant and equipment 57,972,745 8,081,675 66,054,420 59,618,441 8,157,010 67,775,451 Deferred tax assets 12,222,880 246,499 12,469,379 11,970,197 246,554 12,216,751 Investment property 43,281,826 820,019 44,101,845 43,614,546 836,730 44,451,276 Right of use assets 3,643,745 0 3,643,745 3,587,916 0 3,587,916 Investments in subsidiaries 120,920,955 11,480,011 132,400,966 120,857,455 11,480,011 132,337,466 Investments in associates 34,883,929 0 34,883,929 31,337,951 0 31,337,951 Financial investments 804,197,080 1,136,469,740 1,940,666,820 800,423,050 1,183,165,323 1,983,588,373 - loans and deposits 28,176,394 6,932,100 35,108,494 30,245,946 6,705,139 36,951,085 - held to maturity 0 138,151,594 138,151,594 0 143,908,512 143,908,512 - available for sale 776,020,686 783,537,207 1,559,557,893 770,063,803 824,938,626 1,595,002,429 - recognised at fair value through profit and loss 0 207,848,839 207,848,839 113,301 207,613,046 207,726,347 Unit-linked insurance assets 0 498,966,604 498,966,604 0 442,292,488 442,292,488 Reinsurers’ share of technical provisions 130,773,686 70,759 130,844,445 105,862,172 41,266 105,903,438 Receivables 159,316,338 2,823,392 162,139,730 99,841,079 1,438,370 101,279,449 - receivables from direct insurance operations 107,409,576 862,959 108,272,535 67,453,193 179,021 67,632,214 - receivables from reinsurance and coinsurance operations 34,184,234 2,552 34,186,786 19,797,094 0 19,797,094 - current tax receivables 0 0 0 0 0 0 - other receivables 17,722,528 1,957,881 19,680,409 12,590,792 1,259,349 13,850,141 Other assets 4,696,143 133,820 4,829,963 3,695,106 46,693 3,741,799 Cash and cash equivalents 21,463,124 38,675,711 60,138,835 11,916,560 10,387,662 22,304,222

EQUITY AND LIABILITIES 1,455,856,804 1,702,907,975 3,158,764,779 1,349,958,827 1,663,255,332 3,013,214,159 Equity 529,356,388 95,068,916 624,425,304 533,692,011 110,311,163 644,003,173 Controlling interests 529,356,388 95,068,920 624,425,308 533,692,009 110,311,163 644,003,171 - share capital 51,340,540 22,360,852 73,701,392 51,340,540 22,360,852 73,701,392 - share premium 40,344,977 13,067,907 53,412,884 40,344,978 13,067,907 53,412,884 - reserves from profit 322,348,752 45,513,891 367,862,643 322,348,752 45,513,891 367,862,643 - fair value reserve 48,067,420 4,010,528 52,077,948 49,399,362 10,002,717 59,402,079 - net profit brought forward 43,334,885 7,639,539 50,974,424 46,207,250 14,319,286 60,526,536 - net profit for the year 23,919,814 2,476,199 26,396,013 24,051,129 5,046,510 29,097,639 Subordinated liabilities 49,444,335 0 49,444,335 49,423,693 0 49,423,693 Insurance technical provisions 758,014,769 1,053,287,872 1,811,302,641 671,257,573 1,079,057,809 1,750,315,382 - unearned premiums 309,375,343 421,514 309,796,857 234,785,484 405,332 235,190,816 - mathematical provisions 0 1,017,217,108 1,017,217,108 0 1,041,557,084 1,041,557,084 - claims provisions 422,358,998 20,932,071 443,291,069 410,567,439 19,692,182 430,259,621 - other insurance technical provisions 26,280,428 14,717,179 40,997,607 25,904,650 17,403,211 43,307,861 Insurance technical provisions for unit- linked insurance contracts 0 503,258,556 503,258,556 0 448,726,097 448,726,097 Employee benefits 10,891,063 2,266,658 13,157,721 10,820,648 2,252,716 13,073,364 Other provisions 732,047 111,700 843,747 658,257 111,700 769,957 Deferred tax liabilities 11,526,681 4,041,095 15,567,776 11,833,573 9,914,340 21,747,913 Liabilities from investment contracts 0 0 0 0 0 0 Other financial liabilities 19,401,926 32,970,759 52,372,685 1,633,896 0 1,633,896 Operating liabilities 30,714,564 7,472,252 38,186,816 26,962,627 7,015,144 33,977,772 - liabilities from direct insurance operations 7,959,568 7,466,032 15,425,600 3,633,281 7,003,623 10,636,904 - liabilities from reinsurance and coinsurance operations 22,232,431 6,220 22,238,651 19,812,663 11,521 19,824,185 - current tax liabilities 522,565 0 522,565 3,516,683 0 3,516,683 Lease liabilities 3,785,359 0 3,785,359 3,675,805 0 3,675,805 Other liabilities 41,989,672 4,430,167 46,419,839 40,000,744 5,866,363 45,867,107

in EUR INCOME STATEMENT H1 2021 H1 2020 Non-life Life TOTAL Non-life Life TOTAL NET PREMIUM INCOME 196,085,695 96,011,947 292,097,642 195,627,927 87,582,175 283,210,102 - gross written premium 341,447,955 96,455,170 437,903,125 311,776,739 88,081,037 399,857,776 - ceded written premium -101,342,691 -426,853 -101,769,544 -78,906,188 -445,747 -79,351,935 - change in unearned premium reserve -44,019,569 -16,370 -44,035,939 -37,242,624 -53,115 -37,295,739

INCOME FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 119,640 0 119,640 154,339 0 154,339 - profit on equity investments accounted for using the equity method 0 0 0 0 0 0 - other income from investments in subsidiaries and associates 119,640 0 119,640 154,339 0 154,339

INCOME FROM INVESTMENTS 3,904,652 61,600,801 65,505,453 10,115,392 22,392,687 32,508,079 - interest income calculated using the effective interest method 2,364,527 7,706,350 10,070,877 3,984,974 10,129,667 14,114,641 - gains on disposals 909,270 3,916,990 4,826,260 5,395,664 9,321,505 14,717,169 - other income from investments 630,855 49,977,461 50,608,316 734,754 2,941,515 3,676,269

OTHER INCOME FROM INSURANCE OPERATIONS 20,769,366 2,264,246 23,033,612 18,972,149 1,760,789 20,732,938 - fees and commission income 17,072,251 2,264,181 19,336,432 15,112,558 1,760,231 16,872,789 - other income from insurance operations 3,697,115 65 3,697,180 3,859,591 558 3,860,149

OTHER INCOME 3,654,041 404,897 4,058,938 3,461,083 225,094 3,686,177

NET CLAIMS INCURRED 103,555,958 82,860,683 186,416,641 108,561,965 79,269,911 187,831,876 - gross claims settled 111,166,285 81,744,213 192,910,498 115,878,484 78,287,984 194,166,468 - reinsurers’ share -18,616,462 -93,737 -18,710,199 -15,945,534 -97,661 -16,043,195 - changes in claims provisions 11,006,135 1,210,207 12,216,342 8,629,015 1,079,588 9,708,603

CHANGE IN OTHER INSURANCE TECHNICAL PROVISIONS (excluding ULI) 375,778 -6,265,708 -5,889,930 21,639 4,844,889 4,866,528 CHANGE IN INSURANCE TECHNICAL PROVISIONS FOR UNIT-LINKED INSURANCE CONTRACTS 0 55,073,717 55,073,717 0 -23,335,482 -23,335,482 EXPENSES FOR BONUSES AND DISCOUNTS 4,690,814 0 4,690,814 8,606,232 0 8,606,232

OPERATING EXPENSES 67,217,942 18,174,661 85,392,603 60,867,498 15,763,517 76,631,015 - acquisition costs 49,564,015 12,824,338 62,388,353 45,201,762 10,959,536 56,161,298 - other operating costs 17,653,927 5,350,323 23,004,250 15,665,736 4,803,981 20,469,717

EXPENSES FROM INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES 2,938 0 2,938 7,002 0 7,002 - loss on investments accounted for using the equity method 0 0 0 0 0 0 - other expenses from financial assets and liabilities 2,938 0 2,938 7,002 0 7,002

EXPENSES FROM INVESTMENTS 2,635,142 6,398,195 9,033,337 3,766,316 33,440,179 37,206,495 - loss on impairment of investments 0 0 0 902,644 70,224 972,868 - loss on disposal of investments 625,205 2,130,456 2,755,661 695,244 2,667,573 3,362,817 - other expenses from investments 2,009,937 4,267,739 6,277,676 2,168,428 30,702,382 32,870,810

OTHER INSURANCE EXPENSES 11,370,673 471,146 11,841,819 12,365,715 1,079,577 13,445,292

OTHER EXPENSES 5,403,632 505,623 5,909,255 3,298,750 151,532 3,450,282 - expenses from financing 1,133,026 3 1,133,029 1,283,712 129,797 1,413,509 - other expenses 4,270,606 505,620 4,776,226 2,015,038 21,735 2,036,773

PROFIT BEFORE TAX 29,280,517 3,063,574 32,344,091 30,835,773 746,622 31,582,395 Income tax expense 5,360,704 587,374 5,948,078 5,115,264 109,371 5,224,635 NET PROFIT FOR THE PERIOD 23,919,813 2,476,200 26,396,013 25,720,509 637,251 26,357,760

Significant items of the statement of financial position

Intangible assets

In the reporting period, the book value of intangible assets of the Triglav Group increased by EUR 9.1 million. Long-term deferred acquisition costs have increased by EUR 11.4 million, while new purchases of licences and software equalled EUR 2.5 million. In the first half year of 2021 amortisation reached EUR 4.7 million.

In the reporting period, the book value of intangible assets of Zavarovalnica Triglav increased by EUR 5.2 million. In the separate financial statements, the change mainly refers to the increase in long-term deferred acquisition costs. These have increased by EUR 6.4 million. New purchases of other intangible assets in the amount of EUR 2 million primarily relate to the purchase of licences and software. In the first half year of 2021 amortisation of intangible assets of Zavarovalnica Triglav amounted to EUR 3.2 million.

Property, plant and equipment

In the first half year of 2021 the book value of property, plant and equipment of the Triglav Group decreased by EUR 2.6 million. In the first half year of 2021 Triglav Group acquired new property, plant and equipment worth EUR 2.1 million and sold it in the carrying amount of EUR 130 thousand. In the reporting period, depreciation of property, plant and equipment amounted to EUR 4.4 million.

In the reporting period, the book value of property, plant and equipment of Zavarovalnica Triglav decreased by EUR 1.7 million. In the first half year of 2021 Zavarovalnica Triglav acquired new property, plant and equipment worth EUR 873 thousand. In the reporting period, depreciation of property, plant and equipment amounted to EUR 2.6 million.

Investment property

The book value of investment property of the Group decreased by EUR 366 thousand. In the reporting period, the Group purchased investment property in the amount of EUR 491 thousand and sold it in the carrying amount of EUR 695 thousand. In the first half year of 2021, depreciation of investment property of the Group amounted to EUR 694 thousand.

In the first half year of 2021 the book value of investment property of Zavarovalnica Triglav decreased by EUR 350 thousand. Zavarovalnica Triglav purchased new investment property worth EUR 243 thousand and sold it in the carrying amount of EUR 111 thousand. In the reporting period, depreciation of investment property amounted to EUR 482 thousand.

Real property recognised as non-current assets held for sale decreased by EUR 213 thousand as a result of the sale.

Financial investments

The tables below show the carrying and fair values of financial assets, excluding unit-linked insurance assets.

in EUR Triglav Group Carrying amount Fair value 30 June 2021 31 December 2020 30 June 2021 31 December 2020 Loans and deposits 91,570,322 97,971,079 95,426,950 104,492,900 Held to maturity 154,791,939 162,824,686 193,572,625 206,893,874 Available for sale 2,088,028,549 2,101,914,068 2,088,028,549 2,101,914,068 Investments recognised at fair value 541,154,142 524,670,726 541,154,142 524,670,726 TOTAL 2,875,544,952 2,887,380,559 2,918,182,266 2,937,971,568

in EUR Zavarovalnica Triglav Carrying amount Fair value 30 June 2021 31 December 2020 30 June 2021 31 December 2020 Loans and deposits 35,108,494 36,951,085 34,017,444 36,322,025 Held to maturity 138,151,594 143,908,512 175,288,268 186,083,461 Available for sale 1,559,557,893 1,595,002,429 1,559,557,893 1,595,002,429 Investments recognised at fair value 207,848,839 207,726,347 207,848,839 207,726,347 TOTAL 1,940,666,820 1,983,588,373 1,976,712,444 2,025,134,262

Tables below show financial investments of Zavarovalnica Triglav and Triglav Group by different groups of financial assets.

Triglav Group

in EUR Values as at 30 June 2021 L&R HTM AFS FVTPL Total Equity instruments 0 0 169,991,952 74,631,471 244,623,423 Debt instruments 5,990,825 154,791,939 1,915,231,996 466,495,637 2,542,510,397 Derivative financial instruments 0 0 0 27,034 27,034 Loans 85,579,497 0 2,804,601 0 88,384,098 Total 91,570,322 154,791,939 2,088,028,549 541,154,142 2,875,544,952

in EUR Values as at 31 December 2020 L&R HTM AFS FVTPL Total Equity instruments 0 0 150,713,700 69,654,294 220,367,994 Debt instruments 6,401,170 162,824,686 1,948,404,958 454,903,131 2,572,533,945 Derivative financial instruments 0 0 0 113,301 113,301 Loans 91,569,909 0 2,795,410 0 94,365,319 Total 97,971,079 162,824,686 2,101,914,068 524,670,726 2,887,380,559

Zavarovalnica Triglav

in EUR Values as at 30 June 2021 L&R HTM AFS FVTPL Total Equity instruments 0 0 126,822,262 2,462,834 129,285,096 Debt instruments 5,990,825 138,151,594 1,430,760,096 205,386,005 1,780,288,520 Derivative financial instruments 0 0 0 0 0 Loans 29,117,669 0 1,975,535 0 31,093,204 Total 35,108,494 138,151,594 1,559,557,893 207,848,839 1,940,666,820

in EUR Values as at 31 December 2020 L&R HTM AFS FVTPL Total Equity instruments 0 0 111,723,131 1,863,439 113,586,570 Debt instruments 6,401,173 143,908,512 1,481,312,962 205,749,607 1,837,372,254 Derivative financial instruments 0 0 0 113,301 113,301 Loans 30,549,912 0 1,966,336 0 32,516,248 Total 36,951,085 143,908,512 1,595,002,429 207,726,347 1,983,588,373

Legend: ▪ L&R: Loans and receivables ▪ HTM: Held to maturity ▪ AFS: Available for sale ▪ FVTPL: Fair value through profit or loss

Unit – linked financial assets

Unit-linked insurance assets are presented below according to their distribution into individual groups.

in EUR Triglav Group Zavarovalnica Triglav 30 June 2021 31 December 2020 30 June 2021 31 December 2020 Equity instruments 552,161,075 443,699,150 494,407,576 396,272,477 Debt instruments 19,089,828 58,109,830 4,559,028 46,020,011 TOTAL 571,250,903 501,808,980 498,966,604 442,292,488

All unit-linked insurance assets are classified in the group of financial assets measured at fair value through profit or loss. Their carrying amounts are equal to their fair values.

Fair value measurement and presentation by valuation level

Financial assets measured at fair value are classified by valuation level in the tables below: ▪ Level 1: value measurement based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (stock exchange quotations and listings provided by third parties), which are entirely based on observable market data (the share of binding listings has to be minimum 90% and there have to be at least three binding listings not older than one day); ▪ Level 2: value measurement less than entirely based on quoted prices for the asset or liability. Fair value measurements may be based on indirectly observable inputs, i.e. data derived from prices of comparable financial instruments, but only up to a strictly limited percentage; ▪ Level 3: value measurement based on prices that do not meet the standards for Level 1 or Level 2. The percentage of unobservable inputs used in value measurement models is considerable.

The following is shown separately for the Triglav Group: - financial assets (i.e. available-for-sale financial assets and financial assets at fair value through profit and loss) and - unit-linked insurance assets.

Capital investments in associates and joint ventures are additionally shown for Zavarovalnica Triglav because they are measured at fair value in stand-alone financial statements. Investments in associates and joint ventures are accounted for using the equity method in the consolidated financial statements and are therefore not included in the presentation of valuation of financial assets at fair value.

Triglav Group

in EUR As at 30 June 2021 Level 1 Level 2 Level 3 Total Equity securities 167,725,445 0 79,702,579 247,428,024 Debt securities 722,208,810 1,659,518,823 0 2,381,727,633 Derivative financial instruments 0 0 27,034 27,034 Unit-linked financial assets 556,778,872 14,413,254 58,777 571,250,903 Total 1,446,713,127 1,673,932,077 79,788,390 3,200,433,594

in EUR As at 31 December 2020 Level 1 Level 2 Level 3 Total Equity securities 151,243,025 0 71,920,377 223,163,402 Debt securities 1,506,407,355 896,900,735 0 2,403,308,090 Derivative financial instruments 0 113,301 0 113,301 Unit-linked financial assets 449,327,642 52,461,780 19,558 501,808,980 Total 2,106,978,022 949,475,816 71,939,935 3,128,393,773

Zavarovalnica Triglav

in EUR As at 30 June 2021 Level 1 Level 2 Level 3 Total Equity securities 57,725,173 0 73,535,457 131,260,630 Debt securities 535,861,431 1,100,284,671 0 1,636,146,102 Derivative financial instruments 0 0 0 0 Unit-linked financial assets 495,654,767 3,311,837 0 498,966,604 Investments in associates 0 0 34,883,929 34,883,929 Total 1,089,241,371 1,103,596,508 108,419,385 2,301,257,264

in EUR As at 31 December 2020 Level 1 Level 2 Level 3 Total Equity securities 49,571,408 0 65,981,498 115,552,906 Debt securities 1,226,158,197 460,904,372 0 1,687,062,569 Derivative financial instruments 0 113,301 0 113,301 Unit-linked financial assets 397,371,769 44,920,719 0 442,292,488 Investments in associates 0 0 31,337,951 31,337,951 Total 1,673,101,374 505,938,392 97,319,449 2,276,359,215

Value assessment techniques and inputs used for measurement purposes

Financial investment type Value assessment method Material parameters Parameter weight applied Fair value

EXTERNAL APPRAISERS (market operator) EUR SWAP interest rate curve, issuer credit spreads, Stochastic model, HW1f and comparable issuer credit Debt securities - composite Level 2 HW2f network models spreads, interest rate volatility, correlation matrix, volatility indices EUR SWAP interest rate curve, issuer credit spreads, Debt securities– compound Stochastic model comparable issuer credit Level 2 with exposure to stock markets spreads, interest rate volatility, volatility indices Derivatives Black-Scholes model Index volatility Level 2

BLOOMBERG BVAL EUR SWAP interest rate curve, Debt securities – companies, Cash flow discounting issuer credit spreads, financial institutions and according to amortisation Level 2 comparable issuer credit government schedule spreads, indicative listings

INTERNAL APPRAISERS

yield curve issued by Republic of Cash flow discounting Republic of Slovenia interest Slovenia (Bloomberg ID: I259 Debt securities - government according to amortisation Level 2 rate yield curve Currency); credit spread schedule between 0% and 0.69%

yield curve issued by Republic of Cash flow discounting Republic of Slovenia interest Debt securities - companies and Slovenia (Bloomberg ID: I259 according to amortisation rate yield curve, issuer credit Level 2 financial institutions Currency); credit spread schedule spreads between 0.91% and 4.49%

g (growth rate during constant Cash flow discounting 2.0% growth period) EBIT margin (constant growth 1% - 35.9% period) Equity securities Discount rate 10.98% - 12.77% for start ups Level 3 Lack of marketability discount 6.5% - 23%

NAV method Real property price changes

Market approach MVIC/EBITDA

Equity investment in associates Equity method Accumulated gains and losses Level 3 Income approach, market 7.5% - 15% depending on Real property for own use Capitalisation rate, market approach, analysis of the most risk/location prices of comparable real Level 3 economical use of development Market values based on Investment property property land information available

Changes of Level 3 financial assets

in EUR Triglav Group Zavarovalnica Triglav 2021 2020 2021 2020 Opening balance as at 1 January 71,939,935 61,061,888 97,319,449 73,739,171 Purchases 13,450,743 6,365,634 16,391,506 19,194,093 Disposals -7,481,018 -1,078,129 -7,430,883 -1,055,403 Revaluations through income statement -157,551 -177,155 106,403 0 Revaluations through Equity 2,032,973 207,149 2,032,910 207,149 Exchange rate difference 3,308 -7,189 0 0 Closing balance as at 30 June 79,788,390 66,372,198 108,419,385 92,085,010

The value of the Triglav Group’s financial assets classified into Level 3 increased in the first six months of 2021 as a result of the payments into venture capital funds. Disposals relate entirely to payouts from these funds. Even revaluation is the result of changes in the value of venture capital funds.

In addition to payments into venture capital funds, the capital increase of ZTSR d.o.o. was recognised under Zavarovalnica Triglav’s acquisitions, which is described in more detail below.

Subordinated debt instruments

Contingent liabilities

No contingent liabilities in the form of a guarantee given were recognised in the first six months of 2021 by the Company. In the reporting period, no contingent liabilities for the guarantees given were created by any Group member.

Distribution of accumulated profits

On 25 May 2021, the General Meeting of Shareholders of Zavarovalnica Triglav decided on the distribution of accumulated profit, totalling EUR 89,624,175 as at 31 December 2020. A part of the accumulated profit in the amount of EUR 38,649,752 was allocated to dividend payments, amounting to EUR 1.70 gross per share. The dividends were paid on 10 June 2021. The distribution of the remaining part of accumulated profit shall be decided on in the following years.

Changes in equity stakes in subsidiaries and business combinations

Capital increase of ZTSR d.o.o.

Through in cash contribution of EUR 3.3 million, Zavarovalnica Triglav increased the capital of jointly controlled ZTSR d.o.o. in the first quarter of 2021, thereby maintaining its 50% participating interest in said company. After the balance sheet date, i.e. 13 July 2021, ZTSR d.o.o. was merged with its subsidiary Diagnostični center Vila Bogatin d.o.o. With the aforementioned transaction, ZTSR d.o.o. was stricken off the Companies Register, and Zavarovalnica Triglav consequently acquired a 50% participating interest in Diagnostični center Vila Bogatin d.o.o. The

change in ownership will be recorded in the business records in the third quarter, and the business combination will not have an impact on the Triglav Group’s consolidated financial statements.

Acquisition of Kirurški sanatorij d.o.o.

The ZTSR Group increased its strategic investment portfolio in the first quarter of 2021 by acquiring a 100% participating interest in Kirurški sanatorij d.o.o. From the point of view of the Triglav Group, this investment is part of regular activities of managing its extensive investment portfolio and has no significant impact on its composition. Kirurški sanatorij d.o.o. will be treated within the Triglav Group as a jointly controlled company and valued using the equity method.

Capital increase of Triglav Avtoservis d.o.o., Ljubljana

In the first quarter of 2021, Zavarovalnica Triglav made a subsequent capital increase of its subsidiary Triglav Avtoservis d.o.o. in the amount of EUR 63 thousand, thus maintaining its 100% participating interest in said company. The capital increase had no effect on the consolidated financial statements of the Triglav Group.

Capital increase of Triglav Savetovanje d.o.o., Belgrade

In the first quarter of 2021, Triglav Svetovanje d.o.o. and Triglav Osiguranje a.d.o., Belgrade increased the capital of their subsidiary Triglav Savetovanje d.o.o., Belgrade proportional to their participating interests. The capital increase was raised by in cash contributions of RSD 7.9 million or EUR 67 thousand. As a result, both companies maintained their participating interests in said company, 51% and 49% respectively.

Capital increase of Triglav Savjetovanje d.o.o., Zagreb

In the first quarter of 2021, Triglav Svetovanje d.o.o. and Triglav Osiguranje d.d., Zagreb increased the capital of their subsidiary Triglav Savjetovanje d.o.o., Zagreb proportional to their participating interests. The capital increase was raised by in cash contributions of HRK 1.1 million or EUR 145 thousand. As a result, both companies maintained their participating interests in said company, 51% and 49% respectively.

Purchase of shares of Triglav Osiguruvanje a.d., Skopje from non-controlling interest holders

In the first half of 2021, Triglav INT d.d., Ljubljana acquired a 0.30% participating interest in Triglav Osiguruvanje a.d., Skopje from non-controlling interest holders, thereby becoming its 81.13% owner. The consideration totalled MAK 2,026,036 or EUR 82,883. The acquisition of the non-controlling interest was recognised in the consolidated financial statements as an increase in share premium of EUR 205.

Capital increase of Lovćen Auto d.o.o., Podgorica

Lovćen Osiguranje a.d., Podgorica increased the capital of its subsidiary Lovćen Auto d.o.o., Podgorica through in cash contribution of EUR 400,000 in the first six months of 2021. The ownership structure of Lovćen Auto was not changed with said capital increase, as Lovćen Osiguranje a.d. remained its 100% owner. The capital increase had no impact on the consolidated financial statements of the Triglav Group.

Related party transactions

Revenues of the Management and Supervisory Board

In the first half year of 2021 the Management Board members were paid the following amounts as compensation for their work:

in EUR Other additional Name and surname Fixed salaries (gross) payments* Bonuses Net pay received Insurance premiums** Other benefits*** Reimbursements Andrej Slapar 97,279 2,252 53,634 53,350 31,487 5,734 751 Uroš Ivanc 92,415 2,941 50,953 54,009 22,220 562 906 Tadej Čoroli 92,415 2,941 50,953 53,244 22,187 2,836 643 Barbara Smolnikar 92,381 2,252 47,095 51,161 21,953 2,835 649 David Benedek 92,415 2,252 26,652 43,563 21,648 3,692 753 Marica Makoter 92,415 2,252 50,953 51,963 22,189 2,811 636 Benjamin Jošar**** 0 0 3,857 2,254 0 0 0 TOTAL 559,320 14,890 284,097 309,544 141,684 18,470 4,338

* Other additional payments include holiday pay and other cost reimbursements. ** Insurance premiums include premiums for supplementary pension insurance, accident insurance, liability insurance and other types of insurance. *** Other benefits include company cars. **** Benjamin Jošar was Management Board member until 2 November 2017.

In the reporting period members of the Management Board did not receive any payments for their work in subsidiaries.

As at 30 June 2021 Zavarovalnica Triglav, d.d. had the following receivables from and liabilities to the Management Board members:

in EUR Name and surname Receivables as at 30 June 2021 Liabilities as at 30 June 2021 Andrej Slapar 0 76,679 Uroš Ivanc 6 72,855 Tadej Čoroli 30 72,867 Barbara Smolnikar 7 72,837 David Benedek 0 50,806 Marica Makoter 16 72,892 TOTAL 59 418,936

In the first half year of 2021 the Supervisory Board members and members of Committees were paid the following amounts as compensation for their work:

in EUR Name and surname Compensation Attendance fee Reimbursements Total gross pay Total net pay Andrej Andoljšek 10,938 1,320 278 12,536 9,117 Igor Stebernak 9,375 5,720 0 15,095 10,979 Milan Tomaževič 9,219 1,320 278 10,817 7,867 Žiga Škerjanec 9,375 5,280 278 14,933 10,861 Mario Gobbo 8,594 1,760 0 10,354 6,821 Peter Celar 9,315 5,060 580 14,955 10,876 Branko Gorjan 7,813 1,320 0 9,133 6,642 Igor Zupan 7,813 1,760 278 9,851 7,165 Simon Kolenc* 3,125 825 0 3,950 2,873 Boštjan Koler* 1,504 2,200 0 3,704 2,694 TOTAL 77,071 26,565 1,692 105,328 75,895

* External members sitting on committees and the Supervisory Board. As at 30 June 2021 Zavarovalnica Triglav, d.d. had the following liabilities to the Supervisory Board members and members of Committees:

in EUR Name and surname Liabilities as at 30 June 2021 Andrej Andoljšek 2,558 Branko Bračko 1,348 Tomaž Benčina 1,266 Peter Kavčič 1,509 Igor Stebernak 2,151 Jure Valjavec 1,119 Milan Tomaževič 1,019 Žiga Škerjanec 1,033 Mario Gobbo 965 Peter Celar 2,053 Branko Gorjan 2,016 Igor Zupan 2,016 Simon Kolenc* 271 TOTAL 19,324

* External members sitting on committees and the Supervisory Board.

Transactions with subsidiaries In daily business operations, many insurance transactions are carried out with subsidiaries of Zavarovalnica Triglav. These transactions are performed at arm’s length and at market prices. Their volume is shown below.

in EUR 30 June 2021 31 December 2020 ASSETS Right of use Asset 765,599 827,255 Shares 132,400,966 132,337,466 Debt securities and loans 4,983,341 6,610,381 Receivables from insurers 35,517 15,620 Premium receivable from re-insurance 10,105,506 6,778,184 Receivables from co-insurers' share in claim 1,274 197 Receivables from re-insurers' share in claim 10,769,034 5,221,704 Other short-term receivables from insurance operation 30,705 82,267 Short term receivables from financing 37,514 46,152 Other short-term receivables 801,724 730,317 Deffered short-term expenses of insurance contract acquisition 0 61,969

LIABILITIES Liabilities to agents and brokers 368,454 368,827 Liabilities for co-insurance premiums 36,346 22,377 Liabilities for re-insurance premiums 11,254,527 9,594,905 Liabilities for re-insurers' share in claims -1,525,640 4,510,857 Other liabilities from co-insurance and re-insurance 31,100 0 Other short-term liabilities 105,151 153,503 Lease liabilities 794,397 851,981

in EUR H1 2021 H1 2020 INCOME AND EXPENSES Gross written premium and active reinsurance premium 19,995,513 16,795,513 Outward re-/co-insurance premium (-) -47,771,945 -45,051,229 Net premium income -27,776,432 -28,255,716 Reinsurance commission income 9,801,675 9,041,522 Other income from insurance operations 721,320 537,935 Interest income 118,945 153,583 Other insurance income 516,174 592,147 Fees and commission income 2,045,780 1,649,287 Income from land and buildings 355,739 330,802 Other income 287,630 201,050 Other income from financial assets 696 757 TOTAL INCOME -13,928,473 -15,748,633 Gross claims settled -980,071 -1,287,231 Re-/co-insurers' share in gross claim -14,760,369 -13,592,809 Net claims -15,740,440 -14,880,040 Expenses for reinsurance premiums 1,879,295 1,866,105 Other financial expenses 2,938 7,002 Interest expenses 10,437 11,598 Depreciation of right of use assets 61,656 67,673 TOTAL EXPENSES -13,786,114 -12,927,662

Transactions with associates In daily business operations, many insurance transactions are carried out with associated companies of Zavarovalnica Triglav. These transactions are performed at arm’s length and at market prices. Their volume is shown below, separately for Zavarovalnica Triglav and for the Triglav Group.

in EUR Triglav Group Zavarovalnica Triglav 30 June 2021 31 December 2020 30 June 2021 31 December 2020 ASSETS Shares 32,195,526 28,237,714 34,883,929 31,337,951 Receivables from insurers 21,782 5,096 21,618 4,932 Other short-term receivables 20,000 0 20,000 0

LIABILITIES Liabilities to policy holders 0 27 0 0 Liabilities to agents and brokers 143 7,319 0 7,176 Other short - term liabilities 0 312 0 0 Accured expenses 688 450 0 0

in EUR Triglav Group Zavarovalnica Triglav H1 2021 H1 2020 H1 2021 H1 2020 Gross written premium 69,217 54,347 68,235 53,039 TOTAL INCOME 69,217 54,347 68,235 53,039 Gross claims settled 5,029 0 5,029 0 Acquisition costs 862 1,648 0 0 TOTAL EXPENSES 5,891 1,648 5,029 0

Transactions with shareholders and shareholder-related companies

The largest shareholders of Zavarovalnica Triglav are the Institute of Pension and Disability Insurance of Slovenia (Zavod za pokojninsko in invalidsko zavarovanje Slovenije – ZPIZ) and Slovenian Sovereign Holding (Slovenski državni holding – SDH), which hold a 34.47% and a 28.09% stake, respectively.

The shareholder-related companies are those in which SDH and the Republic of Slovenia together directly hold at least a 20% stake. The list is published on the SDH website (http://sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).

Business with the two largest shareholders and the state-related parties is limited to regular business cooperation. There were no material individual transactions with the abovementioned companies in the reporting period. The total value of transactions is shown in the table below.

in EUR Triglav Group Zavarovalnica Triglav 30 June 2021 31 December 2020 30 June 2021 31 December 2020

ASSETS Stakes and shares 19,978,743 15,885,929 19,795,407 15,750,155 Debt securities 87,762,465 106,249,828 62,201,976 76,143,968 Operating receivables 7,826 691 7,826 671 Re-insurance receivables 2,929 14,622 2,929 14,622 Other assets 10,610,382 7,407,070 0 0

LIABILITIES Operating liabilities 1,020,675 770,856 865,555 580,942 Re-insurance liabilities 2,665 7,887 2,665 7,887

H1 2021 H1 2020 H1 2021 H1 2020 INCOME Gross written premium 10,100,910 8,727,027 10,247,514 8,996,304 Financial income 754,230 1,076,160 424,035 731,730 Other income 29,063 2,295 20,316 19,863

EXPENSES Gross claims settled 1,595,729 5,587,467 1,600,430 5,762,568 Financial expenses 103,532 247,637 58,042 205,879 Other expenses 4,294,345 4,225,152 3,187,458 2,887,402

Significant events after the reporting date

During the period between the end of the reporting period and the date of approval of the financial statements, there were no other adjusting or non-adjusting events that would affect the compiled financial statements for the period from 1 January to 30 June 2021.

In July 2021, the jointly controlled ZTSR d.o.o. was merged with its subsidiary Diagnostični center Vila Bogatin d.o.o. With the aforementioned transaction, ZTSR d.o.o. was stricken off the Companies Register, and Zavarovalnica Triglav consequently acquired a 50% participating interest in Diagnostični center Vila Bogatin d.o.o. The change in ownership will be recorded in the business records in the third quarter, and the business combination will not have an impact on the Triglav Group’s consolidated financial statements.